cancel
Showing results for 
Search instead for 
Did you mean: 
425Cat
Advisor

Re: Bubbles.............hiccup, hickop, hikep,

Good point ranch , never considered that. Scary if he comes from the Volker mold

0 Kudos
sw363535
Honored Advisor

Re: Bubbles.............hiccup, hickop, hikep,

The comment I heard was that FDIC is concerned about the Ag Bubble.  With its potential to be another housing bubble.

 

Has had my thinker on simmer for a couple of days.  How much of land value, and for that matter grain value is based on the idea there is nowhere else for investment money to go?   I am glad I am not a funds manager.!!!!

 

0 Kudos
kyu2852570
Veteran Contributor

Re: Bubbles.............hiccup, hickop, hikep,

Oh my gosh you guys are so depressing! Corn is this high and a year on the horizon that could be our best year ever and this is all u can talk about? Sure it's gonna burst but there is a bright side. You all talk like you farm about 240 acres that u inherited and still use your dads machinery that you also inherited and anyone that borrows money has about 6 months left of existence. I borrow money have new paint and have some land paid for and $4 corn I still make $700k so don't be beating your chests that anyone doing things with borrowed money if gonna be finished anytime soon
0 Kudos
sw363535
Honored Advisor

Re: Bubbles.............hiccup, hickop, hikep,

Didnt intend for it to sound that way.  Your assumption is wrong in my case.  My concern is not to complain about better markets.  They are a blessing, but the economic activity in the rest of the economy is stealing our opportunity to use these markets to own more production in the future.  You and I are getting a chance to buy another piece of land, but what we need is an opportunity to pay for another piece of land without a high risk of loosing two.

 

My son has been telling me how important it is to optimize our marketing in profitable years, "It is just as important as minimizing losses in weak years".  He's right and I am loving this market, trying to soak it up while it is here.  But we have an expense that is out of control, and when we find ourselves unable to afford our rent or our payments-------------- It doesn't have to be high interest like in the 80's.  Over inflated purchase prices have the same effect---- steel or dirt.

Now is the time to be sure we can still smile with $5 corn in a couple of years.--------thats opto00mism.

0 Kudos
Hobbyfarmer
Honored Advisor

Re: Bubbles.............hiccup, hickop, hikep,

May finally be getting some sanity in the farmland market ...abit too high but resistance all the same. went by a piece of farmland off the NW corner of DES MOINES area, hiway frontage with a buy me sign on it $12,500. Finally seeing a few signs that point to a price resistance #. A for sale sign on Iowa farmland that isn't an auction has been scarcer than hens teeth for the last 6 to 10 years.

0 Kudos
sw363535
Honored Advisor

Re: Bubbles.............hiccup, hickop, hikep,

Look at the data Jim put up on Business forum from Iowa State.  Several counties in Iowa went up on land prices nearly 30% between 2011 and 2012.  Now that's inflation.....................

0 Kudos