# Boom has busted??



## rjmoses (Apr 4, 2010)

Probably....

http://www.stltoday.com/business/local/farm-boom-fizzles-as-u-s-crop-surplus-expands-financial/article_72dcf3ed-3aa4-5c28-823f-dc0f8e0d04ce.html

Ralph


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## atgreene (May 19, 2013)

If nobody saw this coming they're either dumb or stupid. We go through these cycles, just like fuel prices. What goes up, comes back down. Election year bs doesn't help.


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## steve IN (Jan 13, 2010)

Thank God finally. Way too high for way too long. Let the tears begin for the little kids who have all but spent Mommie and Daddie's money. Bring rent back to reality. Had a woman get hay complaining her husband's family bought another new tractor then complained she spends too much raising the kids. I told her file for divorce and tell them you want your half now. Bet that changes their tune.


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## NewBerlinBaler (May 30, 2011)

What caused farmland prices to be way too high for way too long? Interest rates have been way too low for way too long. The Fed is finally starting to ratchet things back up but rates are still a long way off from where they should be (probably around 5%). Let's hope this recent downturn doesn't prompt the Fed to lower the rate again - we'll never get out of this vicious boom / bust cycle.

Watched the Democratic debate last night. Profound irony when moderator Andrea Mitchell asked the candidates how they plan to fix the economy. Mitchell's husband, Alan Greenspan, caused this whole disaster in the first place. Starting in the 90s, Greenspan lowered interest rates so much he essentially pried trillions of dollars out of savings accounts and into that giant casino most people refer to as Wall Street. That's when the country kissed economic stability goodbye.

Gary


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## somedevildawg (Jun 20, 2011)

Damn! There was a boom? I musta missed it.......


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## endrow (Dec 15, 2011)

Land rents coming down . We own 400 acres and at one tine rented another 500 . We lost half of the rented land to development and another 200 to just other farmers . I would say the big boys are pulling there horns in . We have been able to pick up land to rent and have even had 2 people knock on door and ask if we would be interested in renting there land.


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## haybaler101 (Nov 30, 2008)

No change here yet. Neighbor just rented 615 acres for $300+ and another 2800 acres of irrigated sand in neighboring county is at over $300. Also, 400 acres for sale close to home for $13,000 and BTO that has been renting it for years is trying to get financing to buy it.


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## somedevildawg (Jun 20, 2011)

Wow, 14k and acre for a 400 acre parcel in Indiana, wow, wow, wow......does that land have pivots in place covering the 400 acres?


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## endrow (Dec 15, 2011)

Rent of $300 for good dirt 
is still considered cheap. Things are going to change in this area. Milk futures are down to $13 for quite a few months coming up.Dairy is still King in this area.If they are looking to drive some dairy farms out of business they are on the right track it it's kind of scary . All prices were too high but I don't need to see things quite rough.


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## haybaler101 (Nov 30, 2008)

somedevildawg said:


> Wow, 14k and acre for a 400 acre parcel in Indiana, wow, wow, wow......does that land have pivots in place covering the 400 acres?


No irrigation on this, but it is good dirt.


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## steve IN (Jan 13, 2010)

God help our children and grandchildren. Who will feed them when this all shakes out.


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## endrow (Dec 15, 2011)

When will this boom-bust...

Chicken houses going up in our area like crazy.


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## Widairy (Jan 1, 2016)

Big business will own most of it soon enough I suppose. Around here land prices have tripled over the last few years. Now the monster dairies are selling out to the milk processors themselves. Grassland is aggressively buying up the 1000 cows plus dairies in the area. If things get really rough for too long I don't know how many dairies small or large will pull through. Don't get me wrong there are a lot of land owners around who either hobby farm or one spouse works off the farm. Around me I don't see any softening in the real estate market, between the mega dairies and urban sprawl...


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## swmnhay (Jun 13, 2008)

The land prices are all over the board here.A few weeks ago an 80 brought 19,000 and a 640 brought 15,000.Some others in the 8000-9000 range.And then some has no saled when they can't get a bid over 5000.

It's very common on the stuff that sells for the higher prices some sort of investor is involved.The guy made his money elsewhere and buying land is a safe haven for it.Or it's a 1031 exchange where he sold property elsewhere and needs to buy the land to avoid capital gains taxes.

I haven't heard any new rent stories this yr,last yr guys were still bidding 300-400 to get new ground.Talking with my banker last yr they would only OK rent to $250 on loans.


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## mlappin (Jun 25, 2009)

/sigh

I should have went to college and got a journalism degree, then I could write articles pointing out the obvious and get paid for it.

What goes up must come down.


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## 8350HiTech (Jul 26, 2013)

mlappin said:


> /sigh
> 
> I should have went to college and got a journalism degree, then I could write articles pointing out the obvious and get paid for it.
> 
> What goes up must come down.


Man, that makes me think I should be using my journalism degree.


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## Vol (Jul 5, 2009)

mlappin said:


> What goes up must come down.


Provided that one lives long enough.

Land prices climbed here every year for over 40 years before the great recession hit.

Regards, Mike


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