Home Forums Hunting & Shooting Hunter's Campfire Prime Iowa Farm Land Selling

In ten years you might be questioning that sale.

But, if you had any money at all you could put it in a CD for 17% like my father in law did because he was not paying on new expensive equipment and a big new house. He bought everything used, fixed it up and made it work. You can have a CD in the bank or a new tractor that depreciates every day in the barn. It's all about choices. If for some reason the price of fuel and oil goes up and inflation will follow with it along with interest rates. I don't think enough folks plan far enough ahead and it comes back to bite them.

kwg

Where did he find CD's paying 17% rate, the best I can find is from 2.2% for one year and 2.6% for a 5 year, I am not sure if CD's even paid 17% during the Carter inflation years.

drover

I know nothing about barley or what it takes to put a crop in, but the corn would probably have at least $400/acre in input.
Seed, fertilizer, chemicals, cost to put it in, cost to get it out, property taxes, cash rent. Costs me .17/bu to get it to town.
$712/acre sounds fun, but that ain't the end of it a long shot.

The worst I head today, the blood sucking farm "management", outfit has farmers on a 80/29 split! (Blood boiling icon needed!)

80/29 split?

Who gets the 29%?

Should have been 80/20. What a crock!

I had no idea what they charge.

I wondered the same thing. I just assumed that the decimal was misplaced and should’ve said 1.7%.

I’m no Jimmy Buffet (😁) but I don’t recall CD’s breaking 2 digit interest guarantees. I’d sure like to lock in at 17% with no risk....😉

I believe this is referencing interest rates in the 80s. If you ever want to see why old people are rich, check out prime interest rates in the 80s. It's like a payday loan interest today. If you get 15% interest, how can you not get rich?

This was 1982. Interest rates were crazy high. But, if you had money you could buy a CD that paid some really high rates as well. My father in law used to brag it up every so often. I'm pretty sure he left my mother in law a millionaire. Not bad for leaving high school in the 11th grade. He was a pretty sharp guy and could squeeze the crap right out of a buffalo nickel. He had to, he and his wife had 11 kids.

The bottom line was/is, he did not fall for the "it's got to be new and it's got to be the best " line of crap. They lived in a rented 100 year old farm house and his first tractor was an M Farmall and later he added Olivers. His tractors were green but not John Deere green.

kwg

I paid some of that sky high interest back then, I suppose we all did. I did not think long on buying any feeder cattle.

big (large) volumes at lowest (minimum) cost.

allow the niche and specialty producers make money too.

they can target the rich folks who don't live like the rest of us.

You do realize the definition of revenue isnt the same as profit?

Also, I dunno wth your putting out but I was at $228/ac for inputs this year... $400/acre???

EJP1234,

That $228 can not include interest, rent or debt service?

I remember the early 80s in western Ks, neighbors of my dad who were farming were borrowing money to buy lots of land. Interest rates were mid/high teens ( thanks Jimmy).Dad was scratching his head cause “his math” said a good wheat crop could not pay the interest on the loan let alone any principle.
Long story short, the banks took back a lot of that land and dads farm is much bigger now and has been paid off for many years.
And I paid 17% on a home mortgage ( thanks Jimmy).

ol jimmah screwed the pooch for a ton of folks.

and then along came obummer.

what a debacle.

a lesson?

The old story is, say you buy 80 acres. You need %20 cash down, and a clear 80. The two might pay off the new 80.

That is how the banks look at it.