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n. Illinois | When land prices correct it will be a 60-70% retraction in prices. History tells us what happens (look at the 1930's and 1980's both showed the same level of price retraction) so $20,000/ac land will lose $12,000-$14,000 of value bringing it back to $6,000-$8,000. but even there at current economics its still above the value that is supported by the income coming off the ground which today is still roughly $3500-$4000/ac The higher it goes the bigger the pop will be and the greater the pain will be felt. maybe the net income will increase or maybe interest rates will be zero again when it happens. The 50 year mega cycle suggests the 2030's might be very difficult down on the farm. | |
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Future of grain prices
