Agricultural loans being sold at auction

[motherearth]

Federal Reserve: Agricultural credit tightened
http://www.agweek.com/articles/?id=449&article_id=14283&property_id=6

FDIC Loan Sales
http://www.fdic.gov/buying/loan/loansales/index.html

I was listening to a farm report on the radio and am searching for it but all of this information is coming up under my search and I find it scary, really scary.

The report suggested that the largest debt auction from a failed bank since the 1980 Saving and Loans debacle was occuring in the agricultural section. Dairy farmers, hog farmers, ranchers  who are behind and are underperforming.

The speculation is that these loans will be purchased by investos and liquidated to turn a quick profit.

That means that alot of FOOD PRODUCERS will soon lose their farms/ livelihoods/ homes.

The 1980's killed the grain belt. Many small to medium sized farmers went under then. They lost everything! The towns shrank and died. The comparison is terrible to think of.

I will keep searching.
If anyone heard this too, please feel free to put it on here.
I think this is very important news.

motherearth

[motherearth]

Found it!

http://www.denverpost.com/business/ci_12737085

snip:

Federal bank regulators are preparing to auction off three-quarters of a billion dollars' worth of agricultural loans left behind by failed New Frontier Bank — the biggest sale of its kind in decades — after Colorado banks were unwilling to take them.

And the government's advertisement sheds new light into the Greeley bank's reckless practices: It invested heavily outside its home market, extending its lending reach to Florida and Texas.

snip

Half the loans slated for the Aug. 18 online auction are distressed, or at least 90 days past due

snip

New West has taken on about 1,000 new depositors, bringing in $22 million, since New Frontier's meltdown. But it has rejected most of the orphaned borrowers because their loans reflected poor cash flow or collateral that won't cover the debts.

"Ninety percent of the loans we're reviewing from New Frontier are just so atrocious you just can't take them," Leavitt said.

FDIC spokesman David Barr said: "Now we've got to the point where we need to auction these loans and get them back into the private sector. ... You'd have to go back to the '80s to find a sale of agriculture loans like this."

[marcellus]

Buy the pork you like and freeze it.  Buy cheese and freeze it.  This is ugly, Independent Hog Farmers and Dairy's are going out of business.  I deal with these Farmers on a daily basis and they are done. Good bad or indifferent this is the way it is.  This is why milk, cheese and ham is on sale. 

[onemintomidnight]

from a friend who breeds dairy cattle. "dairy farmers in So MN figure about 8 months to go before they are under water." now we are not a big dairy area, but i was thinking that was something....

but that is also just coffee shop talk...reality will show us in time.

[motherearth]

No it is not just cafe chat. That is the scary part!

Here in Iowa, hog farmers are losing about $22/ head for pork, cattle guys are losing as much as $200/ head. A friend who dairied for generations in SD mentioned that the large operation they sold out to is losing about $50,000/ month of operation!!!

Agriculture is in bad shape, really always has been as commodity prices are still at 1940 levels, but now we add debt on top and loans that can't be refinanced.

This is a loss of food production capacity not just someone's livelihood ( bad enough).

When you sell off and slaughter the cows, it takes years to get back up to capacity.

[lfietree76]

It's an interesting situation.  Here we have banks and car companies getting bail outs that are for unstainable industries, but modern big agriculture is unsustainable too.  If anything goverments should bail out farmers contingent on making farm operations sustainable and resilient.  Farmers are most often extremely shrewd business people, they have to be, they are asset rich and cash flow poor, a poor decision can cost them everything.  At a time when food continues to rise and price we see farmers struggling as middle men and input providers raise those costs more and more.  Farming has become a form of indentured servitude where farmers do most of the work, and get about 1.5% of the revenue generated from it.  Maybe it's time for Prairie Fire, or for the system to fail and people to go hungry en masse.  IT will happen eventually anyway, why not get it over with, let the majority of the population who don't know how to grow food go without and then begin to appreciate the value of farming.  The system as it stands can longer go on feeding people or maintain itself with the current inputs required to farm that way.

[beamofthewave]

Instead of subsidizing the arms industry, lets take care of the farmers.  What a mess the country is in due to gollum sucks, giving them the money that should have gone to the people of the country. 

[ConcernedMomma]

8 months, noted.