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Amherst WI | Obviously, I do not know the future here.
BUT
We just had a huge run up in land prices over the last half dozen years or so, not 5% a year more like 20%
We just got done with record grain prices and net farm incomes for at least 2 years, plus significant ad hoc money from USDA for tariffs that most operations didn't really need.
Now we have below cost of production prices, overhead to run the operation going up 10-20% a year, interest costs 100% higher than 4 years ago, a huge surplus of grains all the while those who own land are dying off and that rate is increasing every day (more supply of land to buy coming shortly).
The 80's farmland price crash wasn't caused by 50% of the land on the market in a short period of time, it was closer to 10% over the course of a half dozen years or so. With the age of the owners factor alone here you can tell me that won't be possible again?
I'm not saying don't buy land but you best keep in mind if you are leveraging in order to do that you might be building your foundation on a sand bar in a quick moving river. | |
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Land Prices how long until they reset
