Cambridge, southwestern Nebraska | I like looking at how many bushels of corn it takes to buy an acre of land. Something is certainly out of whack today.
Bought my first piece of land in the early 90’s. Took around 300 bushels per acre.
I bought another quarter when prices on land had nearly doubled in the previous 5 years around 2008? Neighbors thought I was nuts. Corn was $7. Took 200 bushels to buy that.
Today, it takes 800 bushels to buy the same land. I’m not sure that’s doable. Corn price needs to come up or land needs to come down which could be painful for a lot of farmers’ balance sheets.
One caveat in this is yields have increased per acre so there is that. But not quadrupled. Expenses have also increased so I’m not sure the yield increases are adding enough income to offset the higher input costs. |
Gold is on a tear
