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C IL | I buy that argument in your area, if indeed the fringe you be. I picture large land bases assembled a generation or two ago with wheat, now in corn and beans. Land inflation of large owned land bases being very good to balance sheets. Lengthening growing season, etc. we’ve had this discussion before I think.
My cousins out in western CO let the rented land go, shut off the wells, and turned the corn ground into rotational cattle grazing ground. They got drier where you maybe stayed the same with new tech, or got wetter. I guess that is where I see the fringe.
I doubt they have a balance sheet issue, I think they had a forward looking cash flow issue with cheap corn and water so they went a different direction. If I was a banker in their area looking at the situation I gather they were looking at if they kept row-cropping, I would want plenty of the producer’s skin in the game also.
Edited by sand85 1/16/2019 22:28
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How much working capital per acre does your lender want?
