Re: Mike, Whats a farm worth?
BA ----- I totally agree. We may be able to quote farmer buying and think we are learning something but for the most part farmers are just trying to hold on and these days of uncertainty are going to hurt no matter how deep the pockets. A bad investment is just a bad investment.
Fed policy and congress wanting to "prevent pain" has driven investors to land....Tech is "fad" investing....... more gambling on when to get out than anything else. Folks with cash and want to put it somewhere where the principle won't disappear haven't got many choices......... The stock market is like a casino where investors just run from one noisy slot machine to another trying to stay on top of the "new thing". Investing is kind of nutty now with much invested in short life stuff. Ten years may be it for a lot of big companies out there. Land is one of the few things that has held investment value if we don't buy too much "blue sky" (or old water).
Problem Is most all of us know what moves the markets and how to handle the risk. But for 40 years or more, we haven't had any idea what the government was going to do.
a few things I shake my head over......who could have guessed.....
1 Congress would manipulate lending laws and create the housing bubble that shakes the world because regulations get changed to allow us to bundle the bad debt and spread it all over the world's banking community. (compares to the hysteria over this virus -- which is clearly not the plague.)
2 Congress and administration would grease the skids for US businesses to move manufacturing out of the US to cheap labor sources and be able to sell it in the US as though it was not an import. Basically helping them circumvent US labor regulations and US environmental laws(just a small part of the wrong....and not to mentioning that those in politics who played a part in the process collected record amounts of contributions from those who benefited from it)
3 Congress would create sham environmental laws to keep US producers and manufacturers from being able to compete with their new partners in the far east who help them fund their favorite charities.
4 Congress would divert the usda budget to welfare status and destroy most of what usda had in terms of record keeping and farm service... a department that once served the whole of the US population in terms of oversight of food supply channels and food safety now spends it's time projecting the unknown ------ while taking funds and guidelines from rich political action groups to provide habitat for animals we intend to kill for fun not for food. Then spend extensive time scouring public and tax records so we can make sure no one paying a lot of taxes can participate in usda programs.
5 The fed has painted themselves into the economic manipulation corner and is doing very little to prevent real inflation...... In fact they are causing enough to keep most of private business from showing a profit.
6 Who could have guessed that we would go through all this and congress would do absolutely nothing to change the tax code that is based on payroll when the payroll for most of the commercial production sold in the US is now in some other country.
7. and finally for now........... Is the current media panic over a virus....... or a political process it can't control, that show has been going on so long I am having trouble switching channels. Media is another thing that we cannot count on ---- and thought we could 40 years ago. I never finish an infomercial these days without trying to figure out what was left out because it didn't fit the zeal intended. For this virus it was obviously we were not counting the sick folks who never got chronic cases intentionally. So we could fan the flames and our media outlets could say "see we are in control of the voters after all". and How long will it take for the next shipment of toilet paper from China to get to Kansas....??? By next week that will be the reason we don't shake hands. And no one is buying newspaper any more.