Been there. Done that. Lived the SitCom.
Been there. Done that. Lived the SitCom.
the main trouble with markets is that most people think linearly instead of parabolically...of course, just figure out where you are on the parabola and you can profit handsomely...
4 million for 430 acres? Man, someone saw a world class sucker coming right there. That land will not cash flow in his lifetime.
A little bit on the subject I guess: Lots of investors came to Texas and bought houses and rented them out. If the investor goes bankrupt and is no longer in business, to whom does the renter pay the rent?
btt
It’s getting so only the rich can afford a farm these days.
I can’t speak for the rest of the country but here in Maryland farms are being bought up to be cut up into 5 acre home lots. The ones who arent cutting them up are leasing them out to a big farmer.
The rich who buy them like the idea of living in the middle of 200 acres with only corn or grain surrounding them. The big farm leasers are getting subsidy’s from the govt. and sharing that with the Doctors and Lawyers who can afford the farms.The guy with the lease doesn’t have to pay p[roperty taxes on the land he grows crops on. It’s win win.The land will always be a good investment although they cannot grow 4 million dollars worth of crops in their lifetime.They don’t care they dont need the money anyway, they get privacy which is what they want.
Land is always good to buy, They aren’t making it anymore.
The land around here is getting so high that our native bunch of Amish and Mennonites are selling out for big bucks and moving to places where land is cheaper.
The average farmer if he didnt inherit the land is out of luck, The crops they can grow on the land after buying fertiliser,fuel ,seed, tractors, combine, will not make the payment on the land.The small farmer who used to raise a family on 50 acres is a dead breed.Especially since the big money crop—tobacco—is no longer a viable option.
The difference this time is that most land purchase is not leveraged. It has real money in it, not borrowed money. Sure land is high priced but the rent is a 3 percent return on investment. Find that secure return any where else now.
Can it change overnight again, you bet it can and will.
I hope they lose everything- including their asses !
The practice of farming is called “husbandry” for good reason. A good husband nurtures and develops his marriage with long-term goals in mind always.
Farming - today - requires long-term planning and a level of dedication and industry that would shame a sammuri. Today’s farmer can’t just look at this/next years’ crop forcasts. He has to intrepret them and apply that knowledge to his land, micro climate, vendors, markets, equipment inventory and a host of other variables. His objective is not merely to “harvest a crop”, but to plan his crop rotations and farming practices in order to improve his land’s fertility and tilth.
How many “white collar farmers” have the inniative, knowledge or endurance to perform these tasks - often at insignificant earnings ratios - long enough to guarantee our “food security” ? >PS