According to the Agricultural Newsletter from the Federal Reserve Bank of Chicago:
“There was a quarterly decrease of 6 percent in the value
of “good” agricultural land—the largest quarterly decline
since 1985—according to a survey of 227 bankers in the
Seventh Federal Reserve District on April 1, 2009.”
Needless to say this is not a good sign for farmers in the Heartland of America. In all likelihood, this will lead to less money to invest in crops and eventually a reduced yield.
The Federal Reserve also indicates the charge-off rates, in the first quarter of 2009, for all banks on ag loans is 0.42 (a ratio), whereas for the for the first quarter of 2008, the rate was 0.08.
Loan delinquency rates also increased to 1.71 in the first quarter of 2009 versus 1.06 in the first quarter in 2008.
http://www.mudcat.org/@displaysong.cfm?SongID=6261
“Oh the farmer comes to town
With his wagon broken down,
Oh the farmer is the man who feeds us all;”
The above link is to a song from the 1800s. It is worth clicking the link to read the entire lyrics.
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"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
ReplyDeleteHenery Ford
Tlaundry@frontiernet.net
As we all do very little about the current low milk prices; we selfishly hope that our freinds and neighbors will go out of business before we do, so that our fortunes may turn around with a reduced supply of milk; we should all wise-up and think about the data John has just given us to ponder.
ReplyDeleteOur milk pricing system is broken at best and corrupt at worst. The people and manufacturing companies that rely on us for their livelihoods, steal from us with these low milk prices, and line their pockets with increased profits.
There will be no white knight riding in from the government (or anywhere else) to save the dairyman, how long do we wait to save ourselves?
Jeff Suehring
tlaundry@fronteirnet.net