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| just my gut says without government bailouts that land wouldn`t be as much cheaper as one would think. because land has been so crazy far from cash flowing for at least 30 years that tells me that many of those buying land aren`t doing it with corn, bean and borrowed money. if you take out the insane 40 yr old who probably is borrowing and making payments with government money and corn sales, that would maybe peel off 20% of these frothy levels.
but these government checks haven`t been as wonderful as one might think, they announce "$100 acre payment!!! ooo boy!" first of all $100/acre just pays your seed bill, but like so many times the government has all these formulas they send out $40 of the promised $100 and then 8 months later they send out another $40, the last $20 probably never gets sent out or comes mysteriously years later when corn is $7 again. so, I don`t know how much government checks are directly capitalized into land purchases, but the checks probably keep the high rollers in business to spin the wheel for the next jackpot. | |
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The land price is correct because...
