September 30, 2022

Montana Loans

Comments Off on Agricultural Loan – WEST AG INFORMATION NETWORK

Agricultural loan

A dangerous economic trap into which farmers and breeders must not fall. David Sparks, AG Information Network. Agricultural economist Dr Garth Taylor has warned of a precedent that was overturned in 1980 by farmers and ranchers and encourages that same group in 2022 to avoid the pitfalls of borrowing against land. Speaker2: In the 1980s, they were borrowing against falling land commodity prices for their operating loans. They borrow against the earth and the earth began to crumble. And that’s what got him into trouble in the eighties, was borrowing against falling land values ​​and bankruptcy soon and started increasing around that time. And what we want to do is not find ourselves in a situation where we are borrowing on the land and where we have very high interest rates. Some of these generations of kids who are farming now have never had 14% or 15% or 16% interest rates. 100 on their operating loans. And it’s a very real possibility that these extremely high interest rates on their operating loans. Please get out of this situation where you are not borrowing from the land, where your prices and income are covering your operating loans. You can be clean. So far there have been very clean records and we want them to stay that way. Speaker1: Following Dr. Taylor’s advice.