Loading...
HomeMy WebLinkAboutClinton News-Record, 1985-3-20, Page 6411#11014, Wk ni M50 21, oilif slit E Ne' - ,.......... F., . ..... ,.,.....,,,,.... • otivihmoslit .,... .0.....'" 1 ogiK . A . firm pressures here io stay ea oyal bank official horn. p*0 toneirIne.The farm financial crisis in the Pant sienna Yeats is testimony to this. It eases the effort of obtaining credit if you are employing a level of faint financial management, suggested Bearss. :Many fanners especially those over 40 years of age feel beleagured. They have dealt faithfully with the Lucknow Ca -op, for example, for years and now the Co-op manager Dave Dawson wants to know every- thing about your operation right down to "the colour of your underwear". The kinds, of questions asked by trade creditors are serious the more money you want to borrow, said Beams, Questions asked to make a credit decision include the three Cs of credit: Credibility and Collateral. Lenders have Moved away from using the balance sheet, where equity was important, to cash flow as the basis for credit decisions, said Bearss referring to the biggest reflection of change in farm financing in this country. From a lender's point of view, you have priorities but your willingness to deal with the guy is the comer stone of the relationship. "No matter what his assets, if you cannot trust the guy, you will no want to deal with him," Bearss stated. Farmers at the seminar enticized the bank's role in the 1982 interest rate crisis which has created such hardship for farmers. They pointed out the banks made unpreced- ented profits during that period, yet they were not willing to take one cent less in interest from financially hard pressed farm - ere. Bearss commented fanners think the banks made their profits on the backs of fanneas, yet if all the money earned in profits during the time period of 20 per cent plus interest rates had been eliminated, it would have reduced the overall prime rate by only one per cent. Bearss also observed that if the difference between the average interest paid during that period and the lowest interest rate if it had been in effect for that period, makes the difference between making or breaking your operation, you were probably running the operation on too tight a basis. The farmers at the seminar objected saying they were expected to take responsibility for making bad credit decision while the banks, which also made poor credit decisions by lending too much money to fanners incapable of servicing the debt, were not expected to share the 'burden. Bearss pointed out that if farmers wanted to diange the rules in the . middle of the game, when they had good years and made profits, the banks could then come back and expect additional interest payments from the farmers, if banks were expected to lower interest charges or realign the debt when fanners were in a crisis due to high interest. \ \ I 41104 , eV fil PACER PUMPS 1 Big Savings! • 17 HP Twin Kohler Cylinder Engine • Patented Foot Pedal Hydrostatic MARK'S GARAGE Chepstow 366-2634 • Shaft Driven Attachments • Hydraulic Litt • Tough Attachments Helens Quality to Eliminate the Hard Work From Yard Work Pacer's Long Life Features: *Close -coupled to 3 or 5 h.p. Briggs & Stratton or 7 h.p. Tecumseh engines • 11/2", 2" or 3" sizes for flows up to 250 GPM *Working pressures up to 45 psi. •30% glass -filled polyester construction •Vlton and stainless steel shaft seal with EPDMO - rings and check valve *Stainless steel interior and exterior fasteners • Light weight and portable. Pacer Pump can be used for Pumping *Lasso •Treflan *Atrazine *Liquid Nitrogen Solutions *Phosphoric Acid Solution •Malathlon •Bicep •Eradicane •Surflan • Banvel *Dual •Sutan •SevIn 4 011 • Amiben •Basagran •Tolban •Modown •Mocap •N -Serve 24 •Avedex BV •Avedex •Eptame evernam Cliff's Plumbing & Heating Lucknow 528-3913 . .t.: , .i. ,..- in Harvest _ - • woo \ - - 4i . , ‘,. ,.... , to ,,. 9 Time ! ! , We have the 1 1 ' facilities for: *receiving & • ), ,, drying wheat ' " , r owe also buy & • ' , ) --'4, dry barley. , *come in & see I our new • facilities & , plan ahead Amberley Grain Elevators (Division of Parrish & Heimbecker) 395.3300 Jct. Hwy. 86 & 21 oilif slit E Ne' - ,.......... F., . ..... ,.,.....,,,,.... • otivihmoslit .,... .0.....'" 1 ogiK . A . firm pressures here io stay ea oyal bank official horn. p*0 toneirIne.The farm financial crisis in the Pant sienna Yeats is testimony to this. It eases the effort of obtaining credit if you are employing a level of faint financial management, suggested Bearss. :Many fanners especially those over 40 years of age feel beleagured. They have dealt faithfully with the Lucknow Ca -op, for example, for years and now the Co-op manager Dave Dawson wants to know every- thing about your operation right down to "the colour of your underwear". The kinds, of questions asked by trade creditors are serious the more money you want to borrow, said Beams, Questions asked to make a credit decision include the three Cs of credit: Credibility and Collateral. Lenders have Moved away from using the balance sheet, where equity was important, to cash flow as the basis for credit decisions, said Bearss referring to the biggest reflection of change in farm financing in this country. From a lender's point of view, you have priorities but your willingness to deal with the guy is the comer stone of the relationship. "No matter what his assets, if you cannot trust the guy, you will no want to deal with him," Bearss stated. Farmers at the seminar enticized the bank's role in the 1982 interest rate crisis which has created such hardship for farmers. They pointed out the banks made unpreced- ented profits during that period, yet they were not willing to take one cent less in interest from financially hard pressed farm - ere. Bearss commented fanners think the banks made their profits on the backs of fanneas, yet if all the money earned in profits during the time period of 20 per cent plus interest rates had been eliminated, it would have reduced the overall prime rate by only one per cent. Bearss also observed that if the difference between the average interest paid during that period and the lowest interest rate if it had been in effect for that period, makes the difference between making or breaking your operation, you were probably running the operation on too tight a basis. The farmers at the seminar objected saying they were expected to take responsibility for making bad credit decision while the banks, which also made poor credit decisions by lending too much money to fanners incapable of servicing the debt, were not expected to share the 'burden. Bearss pointed out that if farmers wanted to diange the rules in the . middle of the game, when they had good years and made profits, the banks could then come back and expect additional interest payments from the farmers, if banks were expected to lower interest charges or realign the debt when fanners were in a crisis due to high interest. \ \ I 41104 , eV fil PACER PUMPS 1 Big Savings! • 17 HP Twin Kohler Cylinder Engine • Patented Foot Pedal Hydrostatic MARK'S GARAGE Chepstow 366-2634 • Shaft Driven Attachments • Hydraulic Litt • Tough Attachments Helens Quality to Eliminate the Hard Work From Yard Work Pacer's Long Life Features: *Close -coupled to 3 or 5 h.p. Briggs & Stratton or 7 h.p. Tecumseh engines • 11/2", 2" or 3" sizes for flows up to 250 GPM *Working pressures up to 45 psi. •30% glass -filled polyester construction •Vlton and stainless steel shaft seal with EPDMO - rings and check valve *Stainless steel interior and exterior fasteners • Light weight and portable. Pacer Pump can be used for Pumping *Lasso •Treflan *Atrazine *Liquid Nitrogen Solutions *Phosphoric Acid Solution •Malathlon •Bicep •Eradicane •Surflan • Banvel *Dual •Sutan •SevIn 4 011 • Amiben •Basagran •Tolban •Modown •Mocap •N -Serve 24 •Avedex BV •Avedex •Eptame evernam Cliff's Plumbing & Heating Lucknow 528-3913