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| Our yields have gone up significantly since the late 80's. A lender told me they'd loan a million on land at 3.25 interest for five years. Some of these small town banks are full of cash. I think it was 4.25 for 15 years. That was unheard of years ago. The government carries so much debt they'll do anything to keep interest rates down. High interest rates would tank the system. Most farmers in trouble are younger and only own the ground stuck to their shoes. There won't be nearly as many $60,000 pickups sold. Land is in strong hands. The estate tax no longer forces sales like it did in the past. As long as the exemption is high enough that only the wealthiest 1% have to pay estate taxes land prices will not come down. Other areas could be different but in Illinois the 1031 exchange buyers will act as a floor. I only want to own the land next to me. | |
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Corn: Open Interest
