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| I think that is wishful thinking. Of course there is some "old money" but there has been a boatload of land sold in past 10 years and a lot of that old money went to purchasing high priced land (as coop said "it's in strong hands"). If you look at the farm papers they have whole pages of land for sale. Personally I have not seen that many ads for land.
The factor that makes me think the move, when it happens, will be sharp is the speed at which things went up. This wasn't a conservative march up in price, but a race to levels where $10 corn would need to be a normal thing (I can agree that the grain price and land price are not fully linked together all the time, but in the long run it still has to work).
I fully recognize that land will likely never cash flow, but that it's a really good thing to own for long term stability. I also think that if you are captive to the grain business cycle, it will be very difficult to generate enough cash to buy land or make long term payments (assuming no inheritance or other "leg up"). | |
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It is what it is
