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| Having lived through this in the past I’d say farmers will keep paying high prices till the whole thing breaks. And I’m not predicting it will break. In the 80’s it wouldn’t have broken if interest rates hadn’t gotten so high and debt levels weren’t so high. It’s a little different now. Even though we are headed for some very tough years people aren’t negative net worth. So they will keep paying premiums for dirt until they are.
The return on assets is horrible. You’re making 2-3%. Or less for taking a lot of risk and stress. It’s a horrible business but if you love something, you love something.
I’d say prices soften but they don’t collapse. | |
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Top is in the land market (look out down below)
