Saturday, September 27, 2008

The canary is coughing...

This message from a loyal reader is anecdotal, but perhaps it indicates how the credit crunch will reach out and touch farmers - even with strong prices.
For the last 5 months there has been an auction sign on an adjoining
farm for which I have had my eye on for nearly 50 years. Tried to have
my financial house in order and was working with several lenders over
the last months on who was most interested in working with us. Had
several offers with attractive interest rates and the cash flow was
there even based on $4.50 corn and $11.00 beans. Just learned yesterday
that the interest rates are up over 2% in 2 weeks and we can not lock in

just yet. This does change everything for us. Still glad however that
God is still in control. We have been praying that God would guide this
decision and that He did have our permission to stop us if this is not
for us. A very secure place to rest.
I know I'm checking with my local banker today.  Anybody else seeing credit issues?

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