USA | doathlon - 1/16/2021 15:49
When interest rates spiked up in the 1980's farm credit called the loans. My dad told me to never forget that. If interest rates are 10%+ 3 years from now will farm credit call your 3.95% loan? My best advice. Work with those who have your back.
If you want to subsidize a bank @ your expense that is your business. But it is not any different over paying to rent money from a bank than overpaying for inputs @ a retail dealer. Bloated COP is Bloated COP no matter the source.
Doubt if int is 10% in 3 years and also doubt that Farm Credit will be in more trouble than a bank if int rates go up. Capitol is 20% @ Farm Credit that deal with, most banks are about half that. So higher int rates would be more friendly to Farm Credit than banks .
Banks called loans in the 80s too. Local bank went out to haul off a guys hogs. Loaded up the sows and left the baby pigs to starve. Bank got in hot water over that deal with ILL Dept of Ag. The farmer wet nursed the pigs , and when they got big enough to sell as feeder pigs bank hauled those off too .
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Interest Rates Question
