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| I agree that the quality of operations today is generally good. The problem is, these operations have bid margins down, through perceived low risk. I posted up an article the other day that got no comments about how USDA is defunding the crop insurance subsidies. IMHO, that has the potential to change things somewhat. Now, we've bid margins down, we've locked in long term land leases in many cases, and we've got operating costs that are stratospheric in my book. There's a lot of room down under there. The dairy and hog industries have both recently shown us how easy it is to bleed equity. I wouldn't say it can't happen in crop farming. It may not, the perma-bulls may very well have the answer. Part of the equation is no one knows the future. | |
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Land Market
