Expected trend in farmland values........way up!
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Started by metmike - Oct. 5, 2021, 9:53 p.m.

Farm Policy@FarmPolicy


Ag Survey: The anticipated trend in farmland values index grew in the third quarter to reach yet another historical high, suggesting respondents expect farmland values to continue increasing, https://bit.ly/2ZM0i66 



By metmike - Oct. 5, 2021, 9:54 p.m.
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By metmike - Oct. 5, 2021, 9:56 p.m.
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Farm Policy@FarmPolicy


Ag Survey: Irrigated, dryland and ranchland values rose this quarter, https://bit.ly/2ZM0i66 



By metmike - Oct. 5, 2021, 9:57 p.m.
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Farm Policy@FarmPolicy


Ag Survey: Loan volume decreased across most major categories compared with a year ago, except for operating loans, #farm real estate and machinery loans, https://bit.ly/2ZM0i66 



By wglassfo - Oct. 8, 2021, 10:06 a.m.
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Do you think an increase of 5 % int rate is possible

How many loans are for 5 yrs and then re-fi

History says says 5 % plus 2 % current rate = 7 % is not exceptional given past rates

What would anybody do if re-fi cost 7 %

Everybody is on the monthly payment schedule of family budget car, house, food, health insur etc

What expenses would decrease to allow an extra 9,000 increase in house payments

A house with 3 % on 300,000 is 9,000 increased payment over 12 months

Would most family budgets allow for 9,000 plus increase plus energy and other increased prices

You can't live on 30/hr unless two incomes which is more than most  jobs  pay

How long do you think the Fed can hold int rates at near zero???

What kind of a future do our 30-40 yr old folks look forward to

Zero rates for ever???

By metmike - Oct. 8, 2021, noon
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Great points Wayne.

Potential much higher inflation pressures seem to be overpowering here. 

Been saying that the unavoidable one(because of fake green energy schemes) is causing the price of fossil fuels to soar higher, intentionally from some people that benefit.

This means that transportation cost for everything goes higher........and has to be dialed into the price we pay for it. 

Input costs for producers is going thru the roof too.

Fertilizer is one of the huge ones! Some are concerned that there won't even be enough fertilizer for everybody next year and this will lower yields in 2022.

Another secret about fossil fuels: Haber Bosch process-fertilizers feeding the planet using natural gas-doubling food production/crop yields. September 2019


By wglassfo - Oct. 8, 2021, 12:39 p.m.
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This hard to believe what inflation has done

If you bought a house 10 yrs ago, how much has the value gone up??

The same with farm land

Every farm you drive past if it has 100 acres, the owner is a millionaire

Farm land around here is worth a million or more per 100 acres

In fact many would not sell for 2 million

What would you do with the money

Cash loses value every yr

Stks can go down given recent up trends, will stks average out

The land is your income and cash is a loser

Thus unless retirement land is the better choice

Just blows my mind to drive down a road and realize how many farmers are millionaires

My 1st farm cost me 50,000 or 500/acre

No idea what some body would pay for it today