In the 80s the banks were in so deep they would have failed if they foreclosed on the bto farmers that were poor managers and in too deep.
So the banks figured out they could foreclose on farmers that were making their payments, but upside down on the land values. The loans were current, but the land had devalued to where the loan was for more than what the land was currently worth.
So they called in those loans. The farmers could not find a new loan because the valuation was upside down. So the banks could take those properties back on a foreclosure, even tho the payments were pretty much current. There were loopholes in the contracts to call in upside down loans, or use other money issues to call in the land loans....
This gave the banks a land base in addition to the mostly current payments these farms had generated, which they distributed out to the bto fellas that were in too deep to foreclose on and very very far behind on payments.
The reckless bto could then cash flow enough to pay off 75% of their loans, the other 25% was forgiven.
The banks saved themselves by foreclosing on good conservative managers and rewarding the extreme risk takers that didnt manage well.
But it sure hurt the rural communities, as the good people had no choice but to leave farming. The poorer managers were left to run things.
It was a bad deal.
So the only way to make it through the 80s, and I presume the 30s, and I presume the next farm crisis:
Be so conservative you can cash flow without a big loan.
Or, be so reckless and big if you fail you will take the bank along with you. Then both the bank and the govt will plan a way to save you from yourself, and throw smaller folk under the bus.
If you are pretty good at managing but you carry a good sized loan you are in peril as you are the target of the bankers when times get tough.
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