The Hancock-Henderson Quill, Inc.
Over two hundred guests were served a delicious roast beef and ham meal in Carthage prior to an entertaining Agriculture meeting recently. On January 24th First State Bank of Western Illinois hosted their18th "Ag Strategies" dinner meeting. Vice President Andy Baster was master of ceremonies. Bob Rhea gave his top ten strategies for 2005:
10. See the forest & see the trees
9. Enhance technology with price drops
8. Stay tuned to state politics
7. Not what you know, but who
6. Evaluate options for major gifts
5. Prepare for private retirement plans
4. Where will land values go?
3. Can my business compete?
2. How should I invest?
1. What's my business vision?
Derry Brownfield, 73,, was introduced as the main speaker. He was born in 1932 in Missouri, and grew up during the Depression. He is a practical farmer and businessman, and traveled with his wife from his home in Centertown, MO.
speak to the farm customers and guests of First State Bank.
He received his Bachelor and Master's degrees from the College of Agriculture at the University of Missouri. He taught Vocational Agriculture before going to work as a Marketing Specialist with the Missouri Dept. of Agriculture.
He served as the Director of the Kansas City Livestock Market Foundation at the Kansas City Stock Yards prior to establishing himself in the farm broadcasting field.
In 1972, Derry and his partner established the Brownfield Network which currently serves 230 radio stations throughout the Midwest. In 1994 he started his own synicated radio show and he is one of the radio showman who can be heard over 80 radio stations which is aired on over 230 radio stations throughout the Midwest.
Throughout the evening Brownfield filled his message with humor, jesting about politics, universities, the government, lawyers, and bankers and the state of farming.
Brownfield started farming right after WWII in 1947 at age 16. His mother died, and his father had died when he was quite young.
"Corn was $2.27. We had $2.00 corn from 1947, "48, "49 and maybe even part of "50. It never got under $2.00."
"You could buy a brand new tractor. Now it didn't have air conditioning, didn't have a cab and didn't have 4-wheel drive, but it could pull two or three plows. But you could buy that tractor for $1200."
"You didn't have to raise but 600 bushels of corn to buy a new tractor. Now that was pretty good. You could buy a farm and pay for it farming it."
"You see I have been farming since 1947 and I have had three good years. They were in 1947, 1948 and 1949.
Interest was 6% at the bank.
"I went to the great university and my college professor told me I was going to have to get bigger and more efficient or get out of farmer."
Brownfield said he went home and mortgaged his 250 acres and bought the farm next door. He paid $250 an acre and he got the corn on it. But in 1954-55 corn had gone down under $2.00. Land kept going up and he kept purchasing until he had over 1100 acres. The highest price he ever paid was $355 an acre and that was on his last 300 acre purchase.
Brownfield said he had land since 1947 he had been paying on those notes and he figured he had those notes whittled down until in 1980 he only owed $700 an acre on that land.
Interest was 18 and 20 percent. In "81 interest had tripled. It went from 6% to 18% in a little over a year's time.
Everyone laughs but Derry said he, his wife, and his banker didn't think that was funny."
Brownfield said he met with the banker, he shut the door, and said, "The Feds are here and yours is a problem loan. You don't have enough collateral." I said, "That's your fault. If you would loan me more money I would go out and buy all the collateral that you want."
"Then he said lets look at your financial statement. You have your land written down as worth $200 an acre. "Would you sell it for that? I think it is worth at least $600 don't you? Is it all right if we change it on the books as that?
"He took his little old pencil and changed that 2 to a 6 and in a matter of minutes. With just a pencil move my net worth tripled. I walked out of that bank rich."