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Nw Iowa | So take the numbers, refinance when interest drops back to 5%, savings rate drop to 3 or 3.5, add a 3% inflation factor and it changes things alot. I am not saying that will happen but some do. (Wall Street is betting heavily that interest will soften soon.) I don’t know what is the future, , government is talking about some big carbon credits which could be a big plus, (there is so much money wanting to throw itself at climate) , China is a big unknown could be a big minus, who knows. I also agree with you that it may be a good time to pay taxes as tax is scheduled to change after next year, and in down times working capital is king. Corn market will have a big input where land market goes. I think land as a whole is down 10% or so. Word travels fast about high sales, but investors are definitely backing off and avg farms are taking some hits. My post was never that land is a great buy right now, but that everybody looks at it differently and current numbers are constantly changing. I also think that most in ag world have their house in order and things will not fall apart unless some black swan event that can’t be foreseen. The 80’s were much different environment as ag debt was out of control and banks were borrowing on net worth, not cash flow. There will always be some turn over when heavy leveraged guys tip over in avg times.. Right now I would be much more negative to the housing market or auto market as those numbers are way more upside down than the ag world. | |
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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
