# Operating Loans See Sharp Increase



## Vol (Jul 5, 2009)

Farm income drops as operating loans increase.

Regards, Mike

http://www.agriculture.com/news/business/farm-income-drop-pushes-operating-los_5-ar43094


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## swmnhay (Jun 13, 2008)

Me Thinks some spent to much money on new paint,houses and BTO domes instead of paying down debt.Oh I forgot the lake homes,boats,jet skis,4 wheelers and snowmobiles.

I wonder if the debt even includes what the machinery manufactures are carrying?


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## endrow (Dec 15, 2011)

swmnhay said:


> Me Thinks some spent to much money on new paint,houses and BTO domes instead of paying down debt.Oh I forgot the lake homes,boats,jet skis,4 wheelers and snowmobiles.
> 
> I wonder if the debt even includes what the machinery manufactures are carrying?


Yes I think biggest mistake in Farming is the misuse of the credit line.


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## hog987 (Apr 5, 2011)

I have been operation with out a line of credit for a few years now. But have expanded the farm and need one to put a crop in. Took six weeks to get what I needed.. I told my wife this was a bad time to ask to operation loan. Because everyone else is also asking that some banks are just saying no to everyone. Finally did get what I need and the words of advice from an old guy was spent it wisely.


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## Teslan (Aug 20, 2011)

endrow said:


> Yes I think biggest mistake in Farming is the misuse of the credit line.


So you think me asking for a farming line of credit to buy a Jet ski to ride on my irrigation pond to make sure my pumps are ok is a bad idea?


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## Vol (Jul 5, 2009)

Teslan said:


> So you think me asking for a farming line of credit to buy a Jet ski to ride on my irrigation pond to make sure my pumps are ok is a bad idea?


I think that duck will fly....maybe see about expanding the line somewhat to build about a 8000 sq. ft. Morton building to park that jet ski in....hate to leave stuff outside. Oh yea, be sure to get enough to put 3-4 cupolas on top of that Morton. 

Regards, Mike


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## Teslan (Aug 20, 2011)

Vol said:


> I think that duck will fly....maybe see about expanding the line somewhat to build about a 8000 sq. ft. Morton building to park that jet ski in....hate to leave stuff outside. Oh yea, be sure to get enough to put 3-4 cupolas on top of that Morton.
> 
> Regards, Mike


Way ahead of ya. Already planning for a 65x125 foot Morton for the fall of 2015. No cupolas though.


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## somedevildawg (Jun 20, 2011)

Cupolas are too cool.....gotta have at least two


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## mlappin (Jun 25, 2009)

I've thought about not renewing mine before, but now I only need do to it every other year so it's not the hassle it used to be.

It's a wonderful asset to have though, marketing can be put off till the next year for either better prices or tax purposes while bills still get paid.


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## Bgriffin856 (Nov 13, 2013)

I guess it could be good in certain circumstances. But if i needed one to keep the lights on or pay the feed bill.....the cows will be gone

Ha we couldn't get one anyhow....tried to get a loan to build a barn and bank wouldn't approve us...no credit score. Pretty sad when you pay cash for most every thing and go without if its not needed and finance equipment through the dealer and real estate through the owner it doesn't get reported. But someone who will never be debt free in their life can get a loan for whatever they want....


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## swmnhay (Jun 13, 2008)

Bgriffin856 said:


> I guess it could be good in certain circumstances. But if i needed one to keep the lights on or pay the feed bill.....the cows will be gone
> 
> Ha we couldn't get one anyhow....tried to get a loan to build a barn and bank wouldn't approve us...no credit score. Pretty sad when you pay cash for most every thing and go without if its not needed and finance equipment through the dealer and real estate through the owner it doesn't get reported. But someone who will never be debt free in their life can get a loan for whatever they want....


Yea its screwed up the way things are.Sooo you need to build your credit,borrow for something and pay it off early.Many times I bought a piece of eq and put it on a 3 yr note and then pay it of in 1.


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## Gearclash (Nov 25, 2010)

One of the reasons I aquired a credit card way back when was to generate a (hopefully good) credit rating.


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## mlappin (Jun 25, 2009)

Gearclash said:


> One of the reasons I aquired a credit card way back when was to generate a (hopefully good) credit rating.


We did the same for the wife. When we got married she didn't exist according to the credit agency's which is far better than bad credit. Anyways, got her a credit card, then used the card to pay a recurring monthly payment then set the card up to automatically pay the balance off each month.


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## hog987 (Apr 5, 2011)

I have problems with the way the credit system is set up. Its for the benefits of the financial companies. How can someone who pays of the whole balance on there credit card every month have a lower score than the next guy who only pays the min balance. Because they want you to be in dept so they make money off you.

Just out of high school I went in for a line of credit. The bank would not do it unless I put money in a special account as security. $5000 line of credit, $5000 in special security account. Didn't make sense because I already had the money. But I did it anyways to built up my credit. Than about 2 years later I found out that they were not even reporting to the credit bureau. I took my money out of the security account bought a truck and cancelled the line of credit.

My Aunt is a real estate agent. She get some people once in awhile who want to buy a house. They have a 75% down payment. Go to the bank to borrow the last 25%. They cant get approved because they dont have a credit score. Does not make sense, She had one guy who got so upset about this. Finally he said he would just work another 2-3 years and buy the house outright.


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## Vol (Jul 5, 2009)

For those of you that have Credit Unions in your town or nearby, you need to look into loans from such. They are very approachable and not burdened with all the government regulation that financial institutions are regulated with since the crash. 
And the very best part is that they offer better lending rates than lending institutions.

Regards, Mike


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## Teslan (Aug 20, 2011)

hog987 said:


> I have problems with the way the credit system is set up. Its for the benefits of the financial companies. How can someone who pays of the whole balance on there credit card every month have a lower score than the next guy who only pays the min balance. Because they want you to be in dept so they make money off you.
> 
> Just out of high school I went in for a line of credit. The bank would not do it unless I put money in a special account as security. $5000 line of credit, $5000 in special security account. Didn't make sense because I already had the money. But I did it anyways to built up my credit. Than about 2 years later I found out that they were not even reporting to the credit bureau. I took my money out of the security account bought a truck and cancelled the line of credit.
> 
> My Aunt is a real estate agent. She get some people once in awhile who want to buy a house. They have a 75% down payment. Go to the bank to borrow the last 25%. They cant get approved because they dont have a credit score. Does not make sense, She had one guy who got so upset about this. Finally he said he would just work another 2-3 years and buy the house outright.


My wife and I are real estate agents also and we had some clients denied a loan because they hadn't used their credit in 6 months. They had above 750 credit scores,but just hadn't even used their credit cards in the last 6 months. Now to me that is the kind of person that I would jump all over to loan to. We use a couple credit cards for most purchases, but the only reason is because we get a percentage back on every purchase. Not much, but it's something. Pay off the cards every month. But I noticed my Discover card gives me a free credit score. So 6 months ago I had two loans. A car loan and a farm implement loan. I had a credit score of 780. I was current on both. In fact had only had the implement loan for 9 months. I paid it off a month before the first payment was due so essentially I rented the implement for 9 months for about $600, which was the interest. The car loan we had for 12 months and I had made 2 rather large payments before we paid it off. Now my credit score says 730 and it says it dropped because I don't have any loans!! What is wrong with paying off loans!!. Except they know that they will not make much money off of me if anyone lends to me. I always get a 6 year loan on cars, equipment, but plan to pay it off in less then 1. But just in case something happens the minimum payment is less.


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## deadmoose (Oct 30, 2011)

Vol said:


> For those of you that have Credit Unions in your town or nearby, you need to look into loans from such. They are very approachable and not burdened with all the government regulation that financial institutions are regulated with since the crash.
> And the very best part is that they offer better lending rates than lending institutions.
> Regards, Mike


A handful of years ago I accidentally made a double payment online to my cc (which I pay off monthly). Long story short my bank (TCF) told me it was not profitable to give me any kind of note or help in the situation.

Now I am very happy they told me that. I love my credit union I switched all my banking to days later. Keeping (good paying non whiney) customers is always profitable.


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## swmnhay (Jun 13, 2008)

15 yrs ago I walked into a appliance store to buy a freezer.They had free interest for 12 months if you got a card that day.I'd sooner pay cash and get a discount but they wouldn't sell it any cheaper so I applied for the card to get the free interest.Waited around 30 min and he came back and said it was denied.I about busted out laughing.I'd just got done borrowing 1/2 M and I couldn't get approved on a $700 freezer,LOL.I had no CC at the time.Credit was good at my bank but in the CC world it wasn't.


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## mlappin (Jun 25, 2009)

I still deal with the local bank. I only have to renew my credit line every two years now. Last couple of times they keep pestering me to take a larger line of credit out.


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## Bgriffin856 (Nov 13, 2013)

The only way we can get any kind of loan is through farm credit or fsa and im not dealing with the b.s.

Any local bank won't loan cause farming is "high risk"....

Oh and credit cards they are good until you keep up paying them then they cancel you....they aren't making any money

Screwed up world.

Hopefully when i get where i want to be i won't have to worry much about money much. Hard and slowly getting there.....can't pay bills and have money it seems like


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## swmnhay (Jun 13, 2008)

Bgriffin856 said:


> Oh and credit cards they are good until you keep up paying them then they cancel you....they aren't making any money


I've never heard of that.I've never carried a balance ever since I've had one.They don't make one penny off of me they actually pay me to use it.1-2%

It does cost the retailer tho


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## Teslan (Aug 20, 2011)

Bgriffin856 said:


> The only way we can get any kind of loan is through farm credit or fsa and im not dealing with the b.s.
> Any local bank won't loan cause farming is "high risk"....
> Oh and credit cards they are good until you keep up paying them then they cancel you....they aren't making any money
> Screwed up world.
> Hopefully when i get where i want to be i won't have to worry much about money much. Hard and slowly getting there.....can't pay bills and have money it seems like


 I was told by someone from Chase that I was using my Chase MasterCard how they should be used. By paying it off every month. I've had the MasterCard for 15 years and a Discover card for about 19 years and have never paid either of them 1 cent in interest.


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## Vol (Jul 5, 2009)

Teslan said:


> I was told by someone from Chase that I was using my Chase MasterCard how they should be used. By paying it off every month. I've had the MasterCard for 15 years and a Discover card for about 19 years and have never paid either of them 1 cent in interest.


That is really remarkable Teslan and I don't know if I have ever heard of that happening.....no doubt it has, but I have not known of anyone that never once paid interest. Can you give me a loan? 

Regards, Mike


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## Teslan (Aug 20, 2011)

Vol said:


> That is really remarkable Teslan and I don't know if I have ever heard of that happening.....no doubt it has, but I have not known of anyone that never once paid interest. Can you give me a loan?
> 
> Regards, Mike


Oh I've paid interest just not on credit cards. One time my wife and I were with some friends and the friends were complaining about how bad their Chase credit cards were and asked us how much the interest rate on it is on ours. I really have no idea what the interest rate is on our credit cards. The friends were shocked and I think one "friend" thought we were stuck up and rich because of it because her attitude changed toward us after that. I'm assuming the rate on our cards is the high rate that all cards are.


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## deadmoose (Oct 30, 2011)

swmnhay said:


> I've never heard of that.I've never carried a balance ever since I've had one.They don't make one penny off of me they actually pay me to use it.1-2%It does cost the retailer tho


They make their money when you use them. The interest is just icing on the cake. I use my visa regularly for convenience and the 1% I get back. Also because most won't offer a cash discount. I cannot recall the last time I did not pay off my balance the following month. Paying that kind of interest would make me hurl. Teslan does it right.


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## Teslan (Aug 20, 2011)

deadmoose said:


> They make their money when you use them. The interest is just icing on the cake. I use my visa regularly for convenience and the 1% I get back. Also because most won't offer a cash discount. I cannot recall the last time I did not pay off my balance the following month. Paying that kind of interest would make me hurl. Teslan does it right.


I won't use a card that doesn't give back. I used to use only the Discover card because they were the only ones giving rewards back. Unless a place didn't accept them. Then they have their specials on some types of purchases when they give 5% back. Plus certain merchants they give 5% back all the time. My Chase mastercard does the same thing, but they only started doing it a couple years ago. Before that the only reason I had that card is because way back in 1998 I wanted a Mastercard or Visa. So I found one that had the Denver Broncos logo on it and got it. No clue what the interest rate was. Then Chase bought that bank. MBNA I think it was. My wife uses a Target credit card at only Target because they give 10% off any purchase. I propose that people really only need a couple of credit cards. One of their choice and the other in case some merchant doesn't accept the one of their choice. I still haven't figured out why anyone would want an American Express card. Costs to have it and not many places accept it.


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## hog987 (Apr 5, 2011)

About 2 years ago I went into the bank to try and get a $1000 overdraft on my personal checking account. Was turned down. About a month later went and borrowed money and bought $100000 worth of cattle. Just don't make sense.

I can see with that target card would be usefull if paying off every month. But target knows that people will use it to save 10%. Than a certain number of people will buy more than they normally would(cause its on sale) Also a certain number will always carry a balance. Don't know what the interest is but if its 18% and if the person carries the balance for a better part of a year. Than Target is making a pretty penny off a good number of their customers.

Like I said they got it figured out how to make money off the majority of us people.


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## Teslan (Aug 20, 2011)

hog987 said:


> About 2 years ago I went into the bank to try and get a $1000 overdraft on my personal checking account. Was turned down. About a month later went and borrowed money and bought $100000 worth of cattle. Just don't make sense.
> 
> I can see with that target card would be usefull if paying off every month. But target knows that people will use it to save 10%. Than a certain number of people will buy more than they normally would(cause its on sale) Also a certain number will always carry a balance. Don't know what the interest is but if its 18% and if the person carries the balance for a better part of a year. Than Target is making a pretty penny off a good number of their customers.
> 
> Like I said they got it figured out how to make money off the majority of us people.


Yes they do have it figured out. I know people that can't have credit cards because they will just max them out. No self control. And no thought as to how am I going to pay for this. I also figure credit cards should be an extension of your checking account. If you don't have the cash in the bank to pay for whatever you are buying on your credit card then you better think very hard about buying it.


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## somedevildawg (Jun 20, 2011)

I use Amex almost exclusively....they have incentives as well, have used em since '89, have M/C with an outrageous limit, prolly charge about 10k a month on that card. The Amex is very good in dealing with fraud, m/c has gotten better in last 4-5 years......not sure I want that Target card, given their rap.....might make me a Target


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## mlappin (Jun 25, 2009)

Not sure on my Discover card, under ten percent. Had a special once, as long as you never max it or miss a payment the low interest rate stays in effect.

How many places actually accept Amex? Some won't even take Discover. I keep a Visa and Mastercard around as well. Nobody takes Discover in the UK.

I do the same though, have a Kohls, Menards, Speedy Card, and Lowes card for purchases, pay them all in full end of the month.


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