Railex Scam & Looking to the Past
An email is going around the last couple of days with the subject line, RAILEX For Sale. Railex is a major part of the ag industry in the northwest as it offers cold storage and transportation of products via rail to major hubs around the U.S. A quick call to the NW Railex hub proved that the email was bogus and that Railex is NOT for sale and that operation continue as normal for the company.
Back in the 80's there was a crisis. Agriculture struggled hard to survive and some of those struggles continue today. Ask any farmer. The President of the Federal Agricultural Mortgage Corporation, Timothy Buzby talks about one big difference between the 1980's farm crisis and current farm problems.
BUZBY: The level of interest rates has been at current levels for roughly five or six years. I think a dramatic increase in interest rates would cause the situation to be much more similar to that of the 1980's. I think a lot was learned in the 80's. Lenders in particular take a very historical view when they look at the opportunities to advance farmers. I think it's definitely very instrumental to see lenders who were around and lending in the 80's, we do see them learning from the history and from their colleagues who were around then.
That's today's Northwest Report. I'm Greg Martin on the Ag Information Network of the West.