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S Illinois | I believe the late ninetys is a good comparison timeframe. However this will preclude the massive land collapse that everyone is predicting. It feels nothing like the 80's and the fact most everyone was living on borrowed equity to finance growth. Currently that is not the case and most land is not siting at a 50% loan to value rate like the 80's brought about. Not everyone is out of cash. When a rented acre can break even at 200-300 dollar rent, one must remember there are owned acres that also make this profit each and every year. There is still good profit being made and as long as that continues it will be tough to see a land collapse especially when many of the purchases have 5+ owned acres supplying the cash flow for the next purchase. Until the amount of land for sale picks up by either choice or force land will continue to run higher than expected. | |
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Corn: Open Interest
