Land Prices?

[Stocker Steve]

I went to a banquet last night. Four local seed salesmen were there. I had considered renting some additional ground in 2009, so I asked all of them individually what crop would pencil out with current prices. I did not get any useful suggestions... Our area has been dry the last couple years so unless you irrigated or bought revenue insurance you did not cash in on the 2007-2008 prices.

I got a call from the bank last week and they want to come out and "verify." That is a new one for me. They must be getting nervous about asset value.

 

[Brandonm22]

I got a call from the bank last week and they want to come out and "verify." That is a new one for me. They must be getting nervous about asset value.

Farms have been good for banks recently, what has killed them are builders and developers. The banks floated 7 and 8 digit loans to folks who used the money on $55,000 pickups, lot options, leased equipment, labor, engineering, building materials that have long since 'disappeared', and other stuff that the banks can't recoup their money on. Everybody was making so much money that banks didn't bother to 'verify' where a lot of this money was going and now the banks can't get 30 cents on the dollar back on some of these highly speculative investments and a lot of these banks borrowed to make the loan in the first place. It is about time they left the office to "verify".