Posted 11/19/2015 07:07 (#4905917 - in reply to #4905791) Subject: RE: Recent Farmland Partners purchase
subsidized crop insurance allows for land rents to be much higher than basic economics would allow. Add to that, potential ARC-Co payments and a renter has a pretty good handle on his downside and can bid the land to break even. If prices or yields come in ahead the renter wins, if not he has a guaranteed downside limit. Get rid of crop insurance subsidies and watch rents fall.
Recent Farmland Partners purchase
