Dealers how are sales during this tough time

[Twotone]

I've been in the lumber business for 20 years now, and I've seen farm land get swallowed up at $30,000-$50,000 an acre for subdivisions. The building boom is over, (here) for now anyway. Many builders have moved on, leaving an unbelievable amount of forclosures behind. I got hurt at work in Sep. 07, had 2 surgeries and possibly one to go, and haven't worked since. The lumber yard I work at is VERY slow right now. I hope things turn around soon.

Tom

 

[rap14]

You're right. Even though the prime is at historical lows, the banks are going to try to recoup their losses and us good financially responsible citizens. It's not the lack of credit....for anyone over a 700 beacon score but the cost which will be double digits, which it is in some areas right now. say ggodbye to low financing rates for a while. if you can finance at a mfgs low incentive rate now is the time to do it.

 

[WilliamBos]

You're right. Even though the prime is at historical lows, the banks are going to try to recoup their losses and us good financially responsible citizens. It's not the lack of credit....for anyone over a 700 beacon score but the cost which will be double digits, which it is in some areas right now. say ggodbye to low financing rates for a while. if you can finance at a mfgs low incentive rate now is the time to do it.

I am no economist, but if they raise the interest rates, would that slow the economy even more??

 

[AKfish]

I am no economist, but if they raise the interest rates, would that slow the economy even more??

EXACTLY!!! That is precisely the hammer the Fed drops (or raises as the case here) when it attempts to slow inflationary pressures; i.e. consumption.

That's the frustrating conumdrum presently... The Fed has dropped rates to historical lows to ease up borrowing and increase business activity and the banks aren't/won't turn loose of those funds to consumers (at least at reasonable rates).

They no longer trust themselves and they sure don't trust you or me -- unless you want to pony up for exorbitantly high interest payments!

AKfish

 

[mjarrels]

Local MF dealer went bust today... in business since 1946... not sure how many folks will loose their job... did a lot of work on my green tractor over the years!

mark

 

[foggy1111]

Ag land prices roughly doubled here over the past 5 years....and they seem to be holding at these levels.....from what I hear. Most of the buyers are investment tax swap's from the city (sold high priced land for development and do a 1031 tax purchase of other ag land). With those guys out of the future deals...and commodity prices on the wane....maybe lower land prices are around the corner? I guess some farmers know how to run the farm programs....I just have never seen how it all adds up.

In our area a very large ethanol plant just went belly up. The farmers that had contracts to sell them corn at about $6.00 a bushel are now selling their corn on the open market....for probably about $2.50.........that's gotta hurt....expecially for those that leveraged that $6.00 sale into more machinery and land, etc.

Things are so volatile in these times....who knows whats next?

 

[deere755]

Just saw in Farm Week a couple weeks back 720 acres for $8500 an acre in a neighboring county. $275 seed corn, $1100 nitrogen, $1000 potash, and $3 corn. I can not get it to pencil out but I am sure someone will

 

[GarthH]

I agree with many the biggest factor for the recession and maybe a depression is the press scaring the spenders. Many buyers have just shut down the spending and have become to be savers. This is pretty clear is having dramatic affect on the World economy.

It is a historic time for opposing factors appearing in the economy. The is no question the bail outs are huge and will likely cause a inflationary pressure on the US economy - the US $ should take a hit against other currencies caused by the printing press syndrom.

Again the next pressure will be to increase interest rates to control inflation. This will as others have indicated slow dow the economy exactly opposite of what is needed.

If Obama cuts back in the war efforts again this will cause a slow down in the economy.

The guys at the steering wheel are going to have a wide ride; if they get it wrong we will see some extreme problems - how can we have any more extreme problems I often wonder. I think the economists have talked about a mess like this but I don't think anyone has an answer that works.

I was talking to a buddy today and we started to wonder about the conspiracy theroy. You know this is exactly what the Al-Qaeda wanted to do the Western world. Can't image how they could be behind this mess but I could not image 911.

No one can be sure but as others have indicated its hard to find financing. I heard today another huge floor plan financing firm is cutting back and will only provide financing for their own manufactured goods.

Hard to say if the floor plan financing cutbacks will hit our favorite equipment but if it does then we will see some real deals for anyone who has any with significant inventory.

Our mortgage is due late next year. Interest rates are still higher than our existing rates even though banks are giving the lowest ever rates on term deposits.

If you are planning on buying in the next year - nows the time. The economy is really needs it!

 

[TomWhite]

I agree, the sooner they stop reporting the gloom and doom, the sooner it will start to "turn around."

In the case of many networks, keep an eye on whether they change their economic stance after January 20th. I think some of the more Democratic leaning reporters will start talking better about the economy then.

This is not to say that there are not actual problems now. I am just pointing out how sometimes we get over exposed to self-fulfilling prophecies during the newscasts.

 

[redneckford]

seen the price of some of those land values---How the heck does someone pay the tax on those lands----no wonder some states are going broke--- tax on $12000 acre land versus tax on $3000 acre land versus tax on $700 land---location, location, location----only if they contain a gold mine or an oil well--oups!!!gold mine--- oil ain't worth nothing this week!!! What do you grow on $12000 acre ground---no wonder the stock market went to heck---as Sam Walton said it is only paper------or the lack there of!!!!! Do cucumbers sell by the pound there or by the ounce?????---pure gold!!!!! Pickles anyone???