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MN | I get what you’re saying. Bottom line is if we see those prices - Land would have to take the hit.
Well, first the cash rent cowboy would collapse, then land rent, then land prices.
But; it has paid to be long and wrong. Everyone who didn’t grow soybeans because of the downside risk last year was correct ... but the govt made them wrong.
People remember getting bailed out (and they remember others getting bailed out.) If you held firm with your landlord last fall because of the downside risk to grow soybeans and watched your neighbor rent it and collect the mfp and rent another farm away. Even though you may have been right about the profit potential.
So that’s where we’re at, rent it all, grow as much as you can and hope for higher prices or higher yield or a bailout. Or don’t farm. And that’s why land will never get idled, if we got anywhere close we’d get a bailout. Except dairy farmers - those guys seem to always get the shaft. | |
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Post trade deal (if)
