re: OB Farmers

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Land values in private sales have already softened and slowed some. I’ve been watching some pieces sit on the open market for quite a while now.

If interest rates continue to creep they will apply more downward pressure, the trade deals need to be worked out to bring soybeans back into the mix, and at some point these large investment firms are going to realize that the insurance farmers who rent out these large tracts of land aren’t a sustainable business model. If those guys ever start shedding land you will definitely see it head south fast.

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Well a lot has to do with the actual piece of property. I’ve sold two pieces one leveled and irrigated, one only leveled both sold in 150 days, one local buyer one institutional. Both were sold for exactly the top end of my appraised value. I have one that has been up a year, not irrigated or leveled but laid out for it and I’ve had it priced high for various reasons. When I price it right it will sell.

Interest rates are low 4’s and actually down a bit. Money is still cheap for anyone borrowing and that is coming from someone who’s first mortgage was a bargain 16% circa early 80’s.

The investment groups and equity guys are in it for the long haul. They aren’t going to bail out. I agree the trade agreements need to be resolved-the quicker the better.