I have read and seen some interesting info about the changes that have happened recently and will be happening in farming. One was about the older generation who would have normally retired recently, but held on because the prices were so good (understandable). Now there may be more guys retiring than normal if the prices keep sliding? How about the younger guys who just started farming 5 years ago? All they know is the good times. There's a group around here that get brand new diesel pickups every year. Probably not sustainable. And while the parents live in the old farmhouse like their grandparents, the kids go build huge houses! I've seen more tile put in during these good times than in my whole life around here also. All those changes of the ups and downs is interesting to me and how it affects the families and farming.
- Thread starter OliverGuy
- Start date
SweetFeet
Well-known Member
Oliverguy,
I think you hit the nail on the head.
I think there are some (not all) who are living a fairly extravagant lifestyle... they have never seen the "down" years. Honestly, the price of land, rents, crops has had an upward trend the entire 28 years we've owned our farm. We were blessed to buy at rock bottom prices in the mid-1980's... actually kind of insane what this old farm is "valued at" right now.
But what goes up, must come down - unfortunately, some may go broke when times get tough.
I think you hit the nail on the head.
I think there are some (not all) who are living a fairly extravagant lifestyle... they have never seen the "down" years. Honestly, the price of land, rents, crops has had an upward trend the entire 28 years we've owned our farm. We were blessed to buy at rock bottom prices in the mid-1980's... actually kind of insane what this old farm is "valued at" right now.
But what goes up, must come down - unfortunately, some may go broke when times get tough.
John Fulton
Member
Sweet Feet,
Yeh the land prices were lower in the mid-80's, but the interest rates were through the roof!! I know because I built my house in 1984 and had to mortgage it at 13% interest!! And what are they now? About 3%? And people wish for the days of Reagan? (and inflation rate was just about as bad as I recall).
Yeh the land prices were lower in the mid-80's, but the interest rates were through the roof!! I know because I built my house in 1984 and had to mortgage it at 13% interest!! And what are they now? About 3%? And people wish for the days of Reagan? (and inflation rate was just about as bad as I recall).
Traditional Farmer
Well-known Member
- Location
- Virginia
Reagan cleaned up the mess left by Nixon Ford and Carter.And back then there were plenty of good paying jobs around and lots of overtime if you wanted it.I used to work between 50 and 70 hrs every week.Now most of those jobs have gone overseas.
SweetFeet
Well-known Member
John Fulton,
We paid 9% interest in the spring of '86 - BUT we bought on contract for deed, so maybe that made a difference somehow.
I wasn't referring to that era in any political sense... just as a frame of time.
It just seems like our money stretched a lot further back then. We were able to keep a lot more of it in the bank then too (though we still continue to live a fairly frugal lifestyle). BUT I could be wrong...maybe just romanticizing the past.
We paid 9% interest in the spring of '86 - BUT we bought on contract for deed, so maybe that made a difference somehow.
I wasn't referring to that era in any political sense... just as a frame of time.
It just seems like our money stretched a lot further back then. We were able to keep a lot more of it in the bank then too (though we still continue to live a fairly frugal lifestyle). BUT I could be wrong...maybe just romanticizing the past.
John the interest rates were set by the fed. The guy in charge back then thought that people should save money and raised the rates to keep people from borrowing. Reagan did endorse that idea and if you listen to them talk it made sense. Much more sense than the easy credit in the 90's that lead to this last melt down. The blame falls on both parties. Banking rules were deregulated under Carter, Reagan, Bush and Clinton. Clinton is the one who really messed it up when he forced lenders to count welfare as income on loan apps. He made a speech how he made the American dream (owning a home) possible for more Americans than ever before. That coupled with the deregulation of banking rules let some mortgage companies go wild. So you really can't place the blame on just one guy.
Rick
Paul from MN
Member
Reagan cleaned up what? How?
When he ran for office in 1980 he vowed to balance the budget. Said it was the single most important thing. 8 years later he had increased the debt 287%.
When he ran for office in 1980 he vowed to balance the budget. Said it was the single most important thing. 8 years later he had increased the debt 287%.
Traditional Farmer
Well-known Member
- Location
- Virginia
If you lived thru the 70's then you'd know what a huge mess the economy was when Reagan took office.
Not to mention that Iran turned the hostages loose the day Reagan took office because they knew what was coming if they didn't.
Not to mention that Iran turned the hostages loose the day Reagan took office because they knew what was coming if they didn't.
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