Midwest Farm Bubble Continues to Collapse As Farm Income Expected to Crash in 2017

[biglentil]

This zerohedge article is an interesting read I especially found the comments after it entertaining.


[URL="http://www.zerohedge.com/news/2017-02-09/midwest-farm-bubble-continues-collapse-farm-incomes-expected-crash-2017"]http://www.zerohedge.com/news/2017-02-09/midwest-farm-bubble-continues-collapse-farm-incomes-expected-crash-2017[/URL]


This is one comment that stuck out:
I'd like to thank my old Grandad. In 1966 he was getting ready for his auction sale and I was hanging around his place as I wasn't in school yet. He had a bunch of bred sows he was moving around and explained the hog market to me. He said "when everyone's excited and wants to buy, you should sell...and when everyone is fed up and wants to sell, you should buy.Then he told me that applies to everything, but especially farming".

The most money I've made is selling to other farmers. They all get excited about things going up and see a neighbour buy something, and they then bid the prices up to get in, or get bigger. And when prices drop a bit, and the bankers are crapping their pants, they all run for the exit willing to dump things at crazy low prices. Many of them really are pathetic and no one should feel too much sympathy for them.

[farmaholic]

How long before we see it here? Ya ya, I know things are different here now, we(in Sask) needed to catch up, low interest, new(outside) money, some areas have seen extended good times and the producers have money, commodity prices aren't horrible. But all those factors can change.

All that being said there is nothing wrong with grabbing the missing piece or two of the puzzle at these prices. But I would think long and hard before using too much paid for land valued at the current prices to buy more over inflated land. I wouldn't expand too much that I had to use all my paid for land as "collateral" at these values and have to operate on the edge now. If things go bad you'll be pushed over the cliff. It would be like making payments based on a new truck that is 15 years old, kinda hurts.

I wish I knew... like back in 2004 when we bought a section for $260K at auction, should have bought more! I feel less "comfortable and confident" at today's values than I did 13 years ago at $65K a quarter, and I wouldn't say it's hindsight, more of a "gut feeling" and look at the recent run up, things tend to correct themselves.

Don't get me wrong, I've enjoyed the appreciation in the last while but is kinda meaningless if it is never realized.

[SASKFARMER3]

Hey just a note what happens in the USA happens in canadaa couple years later always has always will!

Watch!

[westernvicki]

Just a reminder that we need to feed the world in 2050 (the video is amazing I know) : so get growing more grain folks.

[farmaholic]

Foghorn Leghorn...one of my favorite Looney Toon charactrers....

Have a great weekend!

[SASKFARMER3]

I bet I'm right

[vvalk]

I bet I'm right

Only business in the world where business owners bitch about their assets goin up or being too high. Then bitch about how bad farming is. Then bitch for the sake of bitching. Sask3. It's real simple. Sell you land then and buy it back.

[tweety]

Only business in the world where business owners bitch about their assets goin up or being too high. Then bitch about how bad farming is. Then bitch for the sake of bitching. Sask3. It's real simple. Sell you land then and buy it back.

+1,000,000

[SASKFARMER3]

Why sell my land just wait again like the 80s and buy on the fall! Crash or what ever they call it! Real simple when the rest are going one way sit or turn and run the other way the. When they figure it out sit and run the other way!

[SASKFARMER3]

Some of you actually believe your luck with weather and food crops will continue?

Yea I'm still pissed I missed the last boom because we were playing in the MUD! But hey the sun finally comes out!

[farmaholic]

When it comes to land prices in Sask I'm betting on "red" like SF3, not "black".

Kinda hope I'm wrong. But blah blah blah....

Now watch me practice hypocrisy and buy some!