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NE IOWA/ SE SD | I differ a little, in that I feel land price is simply a spread trade between:
Inputs (seed, chem, fert) and Gross revenue per acre (Yield times corn price) to equate to a return per acre.
A. With yields trending up, corn price could decrease...but the decrease in corn price could be offset by a decrease in input prices which could cause land prices to stay constant.
B. Only if input prices stayed constant and corn price decreased, then land prices may retract.
If you follow what I'm saying.
Edited by yoohoo 2/7/2010 11:05
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Put options on Land
