Summary: DEBT! As interest rates went up, farmers took greater risks and bigger investments. When profits didn't appear, they tried to sell their farms or machines, and couldn't cover their loans. Those who did not take loans were able to consolidate the cheap land and buy up the cheap machines. Today, we don't have a lot of small farmers, but a small number of very large farmers.
Remedy: The video doesn't go into this very deeply, but my proposal is pretty simple. First, new farmers can take advantage of regenerative techniques and farm with minimal or even no inputs. Second, never ever take loans.
New farmers can acquire land by leasing the land. Once you have the land, you can turn a profit with your hard work and ingenuity. If you leased the land and made a decent profit, you should be able to accumulate enough assets to eventually buy your own land.
People who own a lot of land should be leasing out that land to new farmers.
We can also have the federal government sell the land it is sitting on for homesteaders to live on and try their hand at farming.
Additionally, we can try to keep land prices low or at least growing slowly by kicking out foreign investors.
The federal land bank would throw your whole lifes work to the gutter for a less than perfect operating note and or shortfall. No other banks wanted the risk at the time which meant farm sale. As a young teen I was mostly unaware that this happened to my dad and our farm. As my Dad tells, "Two angles came through the door and said they were looking for new farm loans and wanted my Dads business." He had been dumped in the spring two weeks prior by the federal land bank. So this was a lifesaver for him then, and my brothers and I now. We are very risk savoy and trying to limit borrowing as interest rates have now more than doubled since Brandon. The tide is heading out financially and we will see which farmers are covered by swimsuits. My dad passed 3 yrs ago today at age 92. He was debt free and never had a bankruptcy or bank write down. We still rent the Home Farm from my 89 year old mother. I hope to continue my dads legacy into the second half of this century with my own two sons at my side.
Summary: DEBT! As interest rates went up, farmers took greater risks and bigger investments. When profits didn't appear, they tried to sell their farms or machines, and couldn't cover their loans. Those who did not take loans were able to consolidate the cheap land and buy up the cheap machines. Today, we don't have a lot of small farmers, but a small number of very large farmers.
Remedy: The video doesn't go into this very deeply, but my proposal is pretty simple. First, new farmers can take advantage of regenerative techniques and farm with minimal or even no inputs. Second, never ever take loans.
New farmers can acquire land by leasing the land. Once you have the land, you can turn a profit with your hard work and ingenuity. If you leased the land and made a decent profit, you should be able to accumulate enough assets to eventually buy your own land.
People who own a lot of land should be leasing out that land to new farmers.
We can also have the federal government sell the land it is sitting on for homesteaders to live on and try their hand at farming.
Additionally, we can try to keep land prices low or at least growing slowly by kicking out foreign investors.
The federal land bank would throw your whole lifes work to the gutter for a less than perfect operating note and or shortfall. No other banks wanted the risk at the time which meant farm sale. As a young teen I was mostly unaware that this happened to my dad and our farm. As my Dad tells, "Two angles came through the door and said they were looking for new farm loans and wanted my Dads business." He had been dumped in the spring two weeks prior by the federal land bank. So this was a lifesaver for him then, and my brothers and I now. We are very risk savoy and trying to limit borrowing as interest rates have now more than doubled since Brandon. The tide is heading out financially and we will see which farmers are covered by swimsuits. My dad passed 3 yrs ago today at age 92. He was debt free and never had a bankruptcy or bank write down. We still rent the Home Farm from my 89 year old mother. I hope to continue my dads legacy into the second half of this century with my own two sons at my side.
Rain on the scarecrow, blood on the plow