|
W Texas | I am somewhat familiar with the area. You all didn't have the big runup in real estate prices there, so a correction should be less dramatic. IMO.
The other thing you have going for you is natural gas prices. Natural gas is going to be cheap for the rest of our lives (I am about the same age as you). A farm in that area is basically an internal combustion engine that eats natural gas and belches corn.
Th story about the irrigation wells sounds hard to believe to folks from other areas. But I have observed cattle folks do the same thing. Doesn't sound all that suspicious to me.
The market isn't going anywhere out there, so neither is the basis. Too much capital invested in feed lots and slaughter houses. And now dairies etc.
All that said, the current market conditions dictate preservation of capital. IMO. If you don't have a big cushion, chances are you might have another chance to buy another farm next year for cheaper.
No farm is worth losing sleep over, or putting it all on the line. I wouldn't put up an owned piece of ground under the current market conditions. Would only purchase myself if I had a strong down payment and cash for the improvements that are needed.
This is coming from someone that really wants to buy a neighboring farm and have sat on my hands because it feels too good to have all my farms and equipment paid off. The neighboring farm is getting cheaper every few months, BTW. May wind up buying it for around 1/2 of original asking price in a year or two.
Remember the story about the young bull and the old bull chewing cudd on the hill. | |
|
Bidding on new land and can't decide when to stop..........it still seems cheap!
