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| There are a few references to the 80s in this discussion and imo for good reason. In the late 70s land prices were going up rapidly. Guys were gaining equity and used that equity to buy more land. Land values around the home farm were bringing over $4000/acre. Then it seemed like overnight, demand just came to a screeching halt. Not much land sold for a while but when land finally settled out, you couldn’t even get $2000/acre.
Honestly, in looking back it seemed like a blink of an eye when you couldn’t buy farm equipment because they couldn’t make it fast enough to dealers selling new equipment for less than they had to pay for it.
There are times to be aggressive and times to be conservative. This is definitely a time to consider what will happen if we have a reset in farming. | |
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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
