Extra Special Ag Loan Reviews ?

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Stocker Steve
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Extra Special Ag Loan Reviews ?

Postby Stocker Steve » Fri Nov 02, 2018 1:58 pm

Our local bank is currently reviewing ag loans. Usually they do this after year end. Sounds like they are starting to worry.

Renters have propped up the ag land market here. Lots of "retirement auctions" - - but someone who's equipment is not worn out yet is there to rent the land, even though the talking heads say there is no profit in it.

What are you seeing in your area?
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ddd75
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Re: Extra Special Ag Loan Reviews ?

Postby ddd75 » Fri Nov 02, 2018 5:49 pm

paying 5500 - 10k / ac still here. usually traded by neighbors or word of mouth. hardly ever an auction or a for sale sign. yields were great here this year beans hitting 80 and corn 220 bu
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bball
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Re: Extra Special Ag Loan Reviews ?

Postby bball » Fri Nov 02, 2018 6:04 pm

Stocker Steve wrote:Our local bank is currently reviewing ag loans. Usually they do this after year end. Sounds like they are starting to worry.

Renters have propped up the ag land market here.
Lots of "retirement auctions" - - but someone who's equipment is not worn out yet is there to rent the land, even though the talking heads say there is no profit in it.

What are you seeing in your area?


Seeing the same here. Several chunks of land for sale currently( no one is moving in on them). One next door even, but the asking price is absurd for marginal ground
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bball
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Re: Extra Special Ag Loan Reviews ?

Postby bball » Fri Nov 02, 2018 6:06 pm

Rentals are $185 or more for ground that'll make 220 bu + if you get the rain.
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We do not see things as they are; we see things as we are. -Anais Nin
Happy people build their inner world; unhappy people blame their outer world. -Dalai Lama

ddd75
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Re: Extra Special Ag Loan Reviews ?

Postby ddd75 » Fri Nov 02, 2018 6:38 pm

ppl advertising in the paper here they'll pay 220/ac minimum for ANY ground.

doesn't seem to be worth the time but i dunno
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Turkeybird
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Re: Extra Special Ag Loan Reviews ?

Postby Turkeybird » Fri Nov 02, 2018 8:10 pm

People here move in and pay that high rent, but none have lasted more than 4 yrs.
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Stocker Steve
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Re: Extra Special Ag Loan Reviews ?

Postby Stocker Steve » Sat Nov 03, 2018 1:11 pm

Turkeybird wrote:People here move in and pay that high rent, but none have lasted more than 4 yrs.


Easiest way to lose money is to farm a long ways from home. :nod:
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Stocker Steve

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Re: Extra Special Ag Loan Reviews ?

Postby Stocker Steve » Sat Nov 03, 2018 4:05 pm

More and more rental land here as small farmers "retire". There seems to be several renter styles that have emerged due to this:

1) Good Farmer - seeds down poorly drained areas, restores soil, and gets great yields on the remaining row crop acres. Two of these in my area.
2) Insurance Scam - plants whenever and uses little or no fertilizer to generate positive gross margin off of the average count yield base on new land. Three of these in my area.
3) High Volume Optimist - picks up any land that is close to home and hopes for price improvement. One of those in my area.

Any renter styles to add?
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Re: Extra Special Ag Loan Reviews ?

Postby Turkeybird » Sun Nov 04, 2018 5:59 am

Yes, add greedy ones that just don't want anyone else to advance, but ends up losing his butt
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Dave
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Re: Extra Special Ag Loan Reviews ?

Postby Dave » Mon Nov 05, 2018 9:57 pm

Not much plow in the ground farming near me. Just lots and lots of cattle ranches. The asking prices seem to run about $10,000 per cow carrying capacity. I don't see how the cows pay for that. The vast majority of expansion is through leasing ground.
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