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Honored Advisor

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  Smiley Happy  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!  Smiley Happy


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 

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Veteran Advisor

Re: Elevator newsletter decade in review

So if you sold that acre(s) and bought a Winnebago-the vehicle, not the stock-where would you be??  AZ? or???

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Honored Advisor

Re: Elevator newsletter decade in review

Hey Clayton, I`m not a camping guy, my idea of roughing is is a Best Western hotel  Smiley Happy    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.   Smiley Happy

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.

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