JonSCKs - 11/16/2023 02:16

One way to see annual returns on farmland improve would be to see land prices suddenly collapse. This seems unlikely, given the supply and demand balance -- both the scarcity of land available for sale and the eagerness of buyers willing to snap up whatever is offered. Another way, of course, would be to see crop prices grow dramatically higher. You can argue all you like that the justified price for the drought-affected 2023 crop should be higher than it is today, but despite any arguments, it's just not, at least not yet. And when thinking about a long-term commitment like a farmland mortgage, buyers need to be making projections not only for this one year's crop but for the next 30 crops. Cash corn at $4.60 for the next 30 years would, frankly, be a gift