I pretty much got shut out of the rains. You guys can throw me a few bucks with your bounty, ok?
Just kidding. I have 85 percent crop insurance in place with enough dollars guaranteed to keep eating regularly.
And my bias on land prices is that after everyone burns off the bounty of these few years in long term debt and 7 to 8 percent interest rates, we will see a crash of some sorts with $5 corn and $12 beans or less.
I thought the market would go a lot higher...guess you always have to have half the people thinking that, right?
I bought a bargain farm early in the year.... and was runner up bidder on about five other parcels, and right now am glad to be situated as I am. If I was to buy $12,500/acre land ( if I could even get it for that) and put down 60 percent of the price, which would tap out my reserves and working capital....my interest and real estate taxes would be right north of $400 per acre each year without ever paying off the balance....ouch.
How many can do that kind of down payment, and how many are willing to be strung out like that? Probably a few that can buy some land for a few years, just like in the early 80s, and then the pool of buyers dries up and the crash comes.
Watch out below for falling debris!
Maybe in a week, this turns around, and we see the $10 corn, and $25 soybeans, though. I don't know.
