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cropsey, il 61731 | I started in 93 and during the 90's got the chance to sell $1.80 corn and $4.50 beans. It was stable though and guys trying to farm the world in 2 years got their name on a magazine and a date in BK court all pretty quick. I can't see capital requirements backing off to those levels, but I can see us working at a constant $25/acre in decent years and $5/acre in bad years if we keep our costs in check. Not a lot of room for new iron or pickups.
There is less money per acre being made and therefore fewer dollars to chase land on the farmer side. On the investor side, they never thought of it as long term like we do. Once they see topping they will likely pull out. Not a lot of places to go with the money but traders/realtors don't make money unless something is bought or sold. Not sure if land really tanks, but it will step down as buying power decreases.
It's not doom and gloom, it's just life raising a commodity with no value added. There is more risk if you want to add value, but more more money also. I completely agree that the past few years have been a real blessing, but it's far from normal expectations. | |
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Farm Income and Land
