Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (161237)	4/21/2002 5:26:09 PM
From: hdl	Read Replies (1) \| Respond to of 436258

people sometimes go bankrupt when what they buy on highly leveraged credit goes down in value- so it is worth less than the money they borrowed.

To: LLCF who wrote (161237)	4/21/2002 6:02:10 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 436258

LLCF, >>Interesting that that's where lots of the bankrupcies have been. Can you get a loan there??? I live in Minneapolis and have family on the farm in North Dakota so I can not speak from day to day issues, but can give you an over all picture of what has been happening. As far as getting loans it is like anywhere else - if a person has the capability to carry the loan he or she will get it. The farming areas of Iowa, Minnesota, North Dakota and South Dakota have been in a depression since the early 60's. The last time there was a bumper income for the farmer from this area was in 1947. In order to survive the land holdings for a farmer must be large. Also the farmer must be farming land that has come down through the generations cost free, because no way can someone buy farm land and make a profit. The small towns that supported the farmer have become deserted. An interesting statistic is the average size farm prior to 1960 was 80 acres and now it is 3840 acres or larger. Of course there are smaller farms, but if one wants to make a living you need this size of operation. You will find the farmer with small acreage will be working outside the home as will his wife. One contributing factor has happened is the machinery to farm the land has become very expensive and to get a return on this investment one needs large productive land holdings. I think the corn and soybean farmers in Iowa and Illinois can make it with smaller land holding because the income per acre is more from these two products than the small grains. In order to grow these crops one needs the correct environment and north of these areas the growing climate is not long enough to get the maximum amount of crop per acre. I am sure the bankruptcies have not only come from farmers that were not able to expand but also from people that lived in the towns that were supporting the farmers. When there was 144 farms per township and now there are 8 or less farms per township the need for support systems diminish dramatically. Joan