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| hey Kooiker, the reason land is relatively cheap in Brazil is that there`s 5% more coming into production each year. I have heard farmland in developed areas is more valuable. where as in this country it`s claimed we lose acres to houses, solar panels ect, so basically 1% of the population who farm wants to farm 3 times more acres than they currently operate. I definitely could be wrong on this but I doubt land will ever "crash" or cash flow. I just don`t see land dropping to make farming profitable as a avenue. it`s possible some will go broke and forced to sell, but there will be buyers well above cash flow.
i`m doing taxes now and in my case I got roughly $100/acre from the govt, that paid most of my seed expense, I definitely wasn`t out looking to buy farms with my USDA money. it`s true crop insurance is subsidized maybe 1/3rd or $25/acre?, just not enough to really make a difference between success and failure. I think it`s enough to tip the scale for a banker to approve a operating note, but not enough to make someone whole from a mid size marketing or production mistake. jmo | |
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Government payments
