Posted 4/10/2019 21:36 (#7431995 - in reply to #7431782) Subject: RE: Farm sector debt,inflation adjusted 1970-2019
Boone, there is always risk. Farmland is a slow go with 2-3 % return. It may come down but always looks darkest before turn around so don’t want to get too negative. Land doesn’t become obsolete very easy. Stocks could be hit with same issue as Von pointed out. Stock market is having a very historic long run. There are a lot of commercial properties that are sitting empty even in larger cities because of amazon and change in way we purchase things. Our local area real estate markets on commercial property’s are getting hit by run away real estate taxes because cities are running out of tax dollars. Housing is safer but you deal with a lot of renters. Housing also its own issues. Office space is also usually more stable but seeing a awful lot consolidation in business’s also. Two accountants that we use have both sold out to larger firms. I have a friend who is a banker that owns a number of locations but is concerned because he doesn’t see brick and mortar banks needed with the internet in the future. Major mfg like Deere and GM are trying to consolidate locations. May change the dynamics of some towns in the future. There are opportunities out there but be careful because things are changing rather fast. There is nothing wrong with a balanced approach but don’t discount land totally. I have always said land is like gold only with a return, meaning that land is very solid as it is always there and you get a return rather than just let it sit in a safe somewhere. I still think land that has good natural rainfall that doesn’t depend on irrigation will be a good long term investment. Other than the bottom of 80’s I always thought I paid too much for land. Not saying land should be bought, but not totally dismissed.