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NC Missouri | Read a recent article in Illinois Agri-News saying Illinois land rose 17% in 07. Will rise 15% in 08 and 9% in 09. So what's the big deal if it declines 15-20% in 3-5 years? Booking 3 years of $12 beans and $5 corn takes the "top" off new land purchases in my mind... especially if you stockpile some extra "cash" to spend at these prices.
I worry more about China. Everyone thought Russia would give us an extended grain boom in the seventies... but that quickly fizzled. Many think China needs our grain but they seem to always buy less then predicted. And if our housing market truly effects our buying power; quess whose economy tanks with ours??? This "new era" of profits may last a decade... or it may last as long as I have new crop booked at TODAY's prices. | |
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Bears and Bulls on Land Prices
