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Casey Iowa | Every investment has to stand on its own.....whether big or small, needs to be a plan or a goal for each investment....land is very long range plan....we have still bought land this last year, but have backed off quite a bit, became more picky, must be below the market, i.e., 70-80 a tillable CSR point. It may still lose value the next 2-8 years....but in 10-20 years it will most likely be worth more.....we have a solid base already though, so that makes quite a difference as to the risk of buying ground right now. If we did not have the base that we already have I would say that investing in high ROI investments would prolly be smarter at this time....I believe land will go down in value 10-20% more in many places.....maybe more if we grow another huge crop nationwide next year and the carry out goes up close to 3.5 billion bushels.....$2 cash corn will hurt really bad even for very solid farms. Not saying that is gonna happen for sure.....but it is possible!! On the other hand we invest in items that make 30% returns in 6 months to a year quite often....at this time period in farming I believe the 30% return investments are where a younger individual wanting to farm should concentrate, then once they have enough cash from high ROI investments they can purchase land much easier and not have to as much chance of losing it during a down turn.....anyone who thought $5 corn was here to stay for forever was dillusional. But it was fun while it lasted:) | |
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Question for coup and others
