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Tractor Talk Discussion Forum

Re: Getting the time of day from a seed salesman

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NY 986

12-10-2012 14:42:50

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Some places are better than others around here. Definitely a few want the large accounts only. Maybe somebody here knows a good online source. I know this is somewhat unrelated but I hear some BTO accounts are being held up for 2013 till the subsidized crop insurance program is known to be in the next farm bill. I know some guys in the area here operate on razor-thin per acre profits. I don't know that they could bear an extra 50 to 100 dollar per acre expense most years (2.50-3.00 corn and 5.50-6.00 dollar beans). High margin operators can often "self insure" and more times than not pull operating money from cash but I don't know what the big ag bankers are thinking on guys borrowing into six or seven figures. Probably going to want some hefty collateral if the insurance does not pencil out.

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12-10-2012 15:54:06

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 Re: Getting the time of day from a seed salesman in reply to NY 986, 12-10-2012 14:42:50  
You didn't happen to see this story did you? They mentioned it on AgDay last week. If you click the link at the end of the story,there's a new story that isn't quite as bad,but still gonna be a hard road for somebody either way.

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NY 986

12-10-2012 16:17:26

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 Re: Getting the time of day from a seed salesman in reply to rrlund, 12-10-2012 15:54:06  
No, I did not see it till you pointed it out. I know from talking to guys in years gone by that the banks often required certain customers who lacked in collateral relative to the operating loan to take out crop insurance even if it was the catastrophic 50% 500 dollar premium per crop unlimited acres. I am thinking once commodity prices recede from their historical highs that certain farmers will not be able to budget a huge increase in operating expense. Nobody knows for sure what will happen but there are guesses that unsubsidized costs for something on the order of 70 percent coverage may run in the neighborhood of 80 to 100 dollars an acre or more. I know JD Seller was on his bank's loan committee so I don't know if he or somebody else can comment.

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