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n. Illinois | True, Most ag lenders look for a way to fix the issue knowing that time is the only think a lender can give.
However, we have gone 40 years now without land losing value, History has shown that gravity has not been repealed.
Lack of actual earnings at the operator level will eventually have the same effect it always does
$32,000 per acre on farm ground with a cash return to the operator/owner of $500/ac according to Univ of Illinois 2026 crop budget on high quality land is a cash return of 1.7% when then zero risk 10 yr t-bill is roughly 3.8% and CD's of 3.7-3.8%. Yes there is zero capital gains on those two investments but when gravity returns to land values and your only getting 1.7% cash return the fall of land values back to where it cash flows is a deep and quick one. | |
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Agriculture operating credit lines
