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South Central Iowa | I agree generally as well that entitlement is an issue in society. Unravelling it is the difficult part. Like I mentioned above though, we have policy that enriches the stock market. I am involved in Real Estate as well and I can tell you there are enormous numbers of people willing to purchase farmland, even one who likes to purchase on the quarter (stock market related). One wanted to buy around $30M worth of farmland for a 1031 in a specific county in southern Iowa, the problem was there wasn't that much in total armlength transactions in the entire year prior! Kansas and Nebraska may be different, but in this state, land value is almost decoupled from rates of return and commodity prices. That is predominately because of monetary policy and equity market wealth generation.
So even if we stop subsidizing the farmer entirely, no crop insurance, no ethanol, no CCC or Arc or PLC, no youth loans, no cost-share, no anything anywhere, we will still have to contend with people whose equity portfolios rise because of inflationary policy and now far surpass us and can "diversify" their investments by purchasing that farm you or I like with ease. They don't care if it has a 2% return, they paid in cash and they need to park this money somewhere else. | |
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The Real Subsidy
