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rent, economies of size, and government payments
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wheat farmer
Posted 8/19/2007 17:28 (#189753 - in reply to #189581)
Subject: RE: Rent vs own



".....I think I can survive better without it than some of my neighbors."

That is the whole basis for my wanting subsidies eliminated.  The cream of the farmers will rise to the top, whether they farm 50 acres or 15,000 acres.  This may bring land prices back in line to where it is possible to pencil in a profit or at least break even.  Land is currently selling at a level anywhere from 30% to 55% above break even.  Bringing land prices down will open the doors to that next generation of farmers that is currently getting shut out.

Another bust like the '80s and profitability will return to land prices.  Maybe the younger farmers will just need to sit and wait.

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