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Post by Possum on Jan 5, 2013 16:11:48 GMT -6
It's all based on the price of oil. The US government is bent on keeping oil prices high. The vehicle being used is "green energy." It's working. If "drill baby drill" were instituted, oil would drop to $25 per barrel, the economy would start roaring, the government would have enough money to keep CRP, WHIP, EQIP, WRP and other programs vibrant. On the other hand the Middle East would erupt into violence and the oil Sheiks would be pissed at us. Oh yeah--that last sentence is already true.
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Post by Nick C on Jan 5, 2013 16:39:14 GMT -6
You're missing the biggest piece of the puzzle, which tells me none of you run your own business or own equipment or larger assets in such business.
That piece is historically low interest rates, fixed interests rate at that! 3.5% on equipment, 4.5% on land! THEYRE GIVING THE MONEY AWAY. Couple that with historically high commodity prices and Voila! $14k an acre ground!
Money is cheap my friends!
High Interest rates and variable term rates on notes, especially land notes is nearly the main cause of the "farm crisis" in the 80s. Heck nearly all of you were adults during that time besides myself! haha
Rates of 18 to 20some % to borrow money! You cant operate profitably in many businesses or economies with those borrowing rates!
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Post by blackhammer on Jan 5, 2013 19:44:31 GMT -6
You're missing the biggest piece of the puzzle, which tells me none of you run your own business or own equipment or larger assets in such business. That piece is historically low interest rates, fixed interests rate at that! 3.5% on equipment, 4.5% on land! THEYRE GIVING THE MONEY AWAY. Couple that with historically high commodity prices and Voila! $14k an acre ground! Money is cheap my friends! High Interest rates and variable term rates on notes, especially land notes is nearly the main cause of the "farm crisis" in the 80s. Heck nearly all of you were adults during that time besides myself! haha Rates of 18 to 20some % to borrow money! You cant operate profitably in many businesses or economies with those borrowing rates! Everyone on here is too stupid to run their own business.  Thanks for the economic and history lesson.  |
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Post by thorsmightyhammer on Jan 6, 2013 1:14:54 GMT -6
Dont forget revenue insurance nick.
Dont forget wheat and corn was below three bucks.
Never had ethanol mandates in those days either
Money was cheap in the days leading up to the housing bubble
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Post by musher on Jan 6, 2013 5:46:53 GMT -6
And if interest rates go up LOTS of people are going belly up with them.
Heck, you have people borrowing $200 to pay off a camera at $7 a month. The camera is obsolete before it's paid for and, of course, they want a newer/better on. Then there is the t.v. with the 5 foot screen that you need a new wall to hang it on.
So people buy land in order to stash their money. But they also pay taxes on that land so you're losing money until you sell unless the land is generating money.
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Post by trappincoyotes39 on Jan 6, 2013 6:43:48 GMT -6
The E 85 is about dead they took away the fed subsidy on it. No deal there anymore.
Yes at times cheap money isn't a good thing, some people over extend with cheap money.
Also corn at 2.50 or 5.50 beans and as others stated alot of notes will be called in by lenders.
If I where buying ground at these high rates I would get them paid off ASAP as all things are cyclic in nature.
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