Posted 3/12/2019 08:58 (#7375272 - in reply to #7375157) Subject: RE: Race to the bottom.
80’s were much more profitable BEFORE interest costs. A lot of debt in 80’s was bad debt, money borrowed against cheap land to support a higher standard of living.
That said we are going thru a cycle. Those that said cornwould never be below 5, now say it will never be above 4. Things can change so fast.i am always amazed how different market can look just one week to the next. Both good and bad. A couple of weather scares and a good deal with China, Mexico etc and you could see 50 cents in a few short weeks. we have our Price set at 4.00 on corn this year on 85% of production which even with our basis gives us 3.75.
As to land values I don’t know what is going to happen. Land is like buying gold only it has a return. Most investors use land as just part of their investments and also to hedge against other things like inflation or stock market crash. Nothing wrong with stock market but all you have is a sheet of paper saying you have so much. What if you decide to liquidate and nobody answers the phone? In a real bad scenario land may be cheap but you still have it. To me land that wouldn’t depend on irragation will hold its value best unless there is commercial opportunities. Also good land that can produce year after year. It is staggering how much land disappears for development each year. Just random thoughts.