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SW Iowa | If you believe in economic cycles, then farmland has a ways to go to drop in half or more, since the last bottom was in the early 80's. 50 years cycles in farmland values makes it due in the 2030's. Past land crash was in the 30's.
The price of commodities will dictate the price of land and rents, and machinery.
Should something suddenly happen to kill grain demand, and real estate interest rates jump up to 8% look out. Presently and in my future outlook I see NOTHING to make either happen. And apparantly a lot of folks with money, and bankers writing ag loans agree with me.
But, just a short 2 years ago I thought this entire economy was headed into the toilet with a new form of money and government taking over the whole works by force if necessary.
So, don't get too comfortable.
Edited by Itchy 9/24/2010 18:57
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Let's Step Back 5 x 5.
