Ag Recession ?

A friendly place for chat, rumors, gossip and jokes.
Stocker Steve
GURU
GURU
Posts: 8977
Joined: Mon May 02, 2005 8:28 am
Location: Central Minnesota
Has thanked: 89 times
Been thanked: 81 times

Re: Ag Recession ?

Post by Stocker Steve » Tue Oct 23, 2018 5:08 pm

Nesikep wrote:Why is land unaffordable?


Becasue usually the price is not based on the current earnings it can generate. In a few rare cases here you can upgrade or convert land so it will cash flow. I did it once in a row, currently struggling to repeat.

Better row crop land (I don't own any) is priced for a couple percent of operating return, and some appreciation, for a historical total return of 7 to 10%. All government subsides are factored in to the operating return.


Stocker Steve

User avatar
Nesikep
Mentor
Mentor
Posts: 14897
Joined: Sat Dec 13, 2008 9:37 pm
Location: Lillooet, BC, Canada
Has thanked: 715 times
Been thanked: 536 times

Re: Ag Recession ?

Post by Nesikep » Tue Oct 23, 2018 5:24 pm

sim.-ang.king wrote:
greybeard wrote:'yet the price of the goods sold has stayed stagnant for decades' which somehow, is very different than "the price of goods bought'. /\ /\ /\ /\ /\

Isn't it funny that in 2012 when the price of commodities hit there peak that the price of food doubled. Now after 6 years of falling prices, the price of food still hasn't dropped back down to pre2012 prices, even though commodities have? :lol:

Long time no see

Yeah, same can be said of fuel prices... When we had the last price peak the barrel was worth $140 and we had $1.50/l fuel, then it went down to $40/barrel and pump price went down to $1.00/L.. Now it's up a little again, but our pump price is already back to $1.50 again.. god help us when it hits $140 a barrel again!
What can be asserted without evidence can be dismissed without evidence
-Christopher Hitchens

Post Reply