|
Nw Iowa | Instead of all of us complaining about big crops, usda and #fjtour17, wouldn't it be simpler if land would drop to 2k an acre and cash rent to 130-200? (These are Iowa prices I'm comparing) We could cash flow then. As far as landowners not getting enough rent for retirement, well that's just too bad. They should have had other investments to retire on. If you make the decision to own farmland then you assume the risk of price fluctuations due to the grain markets. We can complain all we want but the fact is that there hasn't been near enough financial pain in farm country yet. When land prices start to plummet and cash rents are crashing then the pain is here. I still believe this winter that if you try to lower your cash rent the landlord can make 3 phone calls and it will be rented....until that changes land costs will not change. These land prices are killing the cash flow on row crops. Myself, I would welcome 2k farmland values....maybe I could buy a couple more farms to pass on to my daughter someday. Most farmers aren't in the business of selling land, they are buyers to give to the next generation. Go ahead and rip away at my post but this is how I feel. Our enemy is NOT the usda and crop reports, NOT the funds and board of trade, our enemy lies amongst us. It's our neighbors, our fellow farmers that operate around us. Farmers are setting the land price! The competition for land is what has the prices for rent and purchase so inflated. If we could just lower our land cost we could all cash flow at 2.30-3.30 cash corn. Yes it sounds simple and elementary but it is just that simple. | |
|
Land cost
