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SW MN | It works until it doesn't. It worked in the 60's and 70's, but didn't in the 80's and took nearly 20 years and an ethanol boom to correct.
With a time machine and the ability to know hindsight, buying and leveraging was the correct answer, we could all make the right decision, which then would lead to a different outcome because we would push the limits too far.
I don't remember where I saw it, maybe here or maybe Twitter, but it was about farmland values increasing over generations. Each newer generation is seeing the slowing of return to farmland. It was surmised that this existing generation at most may see a doubling of values but closer to a 150% return.
The math already is ridiculous relative to cash returns, and in an industry when the net sum of profitability is driven to zero, returns seem to go to land over time, but if we only think $100 returns are acceptable, we "should" be getting close to tapped out. | |
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Land outlook
