Elevator newsletter decade in review
My county in 2010 corn yield 184.1 bean yield 51.5. In 2019 corn 180.4 and Beans 53.1 So about flat yield.
2010 Iowa acre farmland $4371 with a cash rent of $176/acre. 2019 $7432 with a rent of $230/acre.
Hogs per hundred weight (I suppose adjusted live) 2010 $66.45 and 2020 $49.78
Seedcorn cost per acre 2010 $79.10 and in 2020 it`s $101/acre
They sell fertilizer so they left those prices off but we all know that`s way up.
Basically, with all this pattern tiling, hands free machinery, straight planting, 36 row planters 12 row cornheads, high priced seed, our yields went up 2 bushel on beans and down 4 bushel on corn. "Well surely you made it up in the markets, right?" ...No, not really beans are 30¢ higher, but corn is 25¢ cheaper than 2010.
How do we do it? Volume!
Medium home went from $175,000 to $248,000 Income went from $49K to $63K the Dow went from 10,725 to 28,621.
But if you owned 1 acre in 2010 sold it and bought Winnebago stock, that $4371 would be worth $19,276 today. Just a FYI
Re: Elevator newsletter decade in review
Hey Clayton, I`m not a camping guy, my idea of roughing is is a Best Western hotel But the Dow was up 266% during the 2010s and Winnebago up 441% during that period. This boom we`ve had in farming didn`t come from yields and certainly not from the market prices....I think indirectly it was "Winnebago stock" in other words outside money that fueled the 41% increase in land prices. It`s funny land rent up 30% (some say crazy high, can`t make money) but more demand percent increase to buy it than rent.
They peg Iowa land at $7432, but there`s instances of $10,000-$15,000 still, I guess a pond might average a foot deep but there might be spots 20 foot deep. I don`t see "farming" actually fueling those absurd prices yet auctioneers swear up and down in 80% of cases "bought by a local farmer". If I see a turtle up on a fencepost, I know one thing for sure, he didn`t get up there by himself.
And hogs $15 cheaper than 10 yrs ago, yet "bam bam bam bam bam bam" new finishers going up all over the place. I realize it`s "other people`s money" but still somewhere in the vertical integration chain there has to be a "mark" with deep pockets.