Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor

Thursday 07/24/14

Fat-Cat Rents Most Vulnerable
It's those cut-throat, top-of-market leases bid up at cash corn's $6.89 season-average peak in 2012 that stand to see the biggest adjustments. Average rents drop much more slowly.[Read Full Blog Post]
Posted at 11:46AM CDT 07/24/14 by Marcia Zarley Taylor | Post a Comment
Comments (7)
Can someone out there tell me what I am missing!I just read land sales in Progressive Farmer How are these guys going to pay for 13000 dollar an acre ground?I look at after taxes,all expences and depreciation you may clear 100.00 per acre on payed for land.So how do you make payments of that size, it would take 130 years to pay for it with no interest.Do they not figure in cost of living.
Posted by Raymond Simpkins at 8:53AM CDT 07/29/14
corn is at a 100-150 loss on my cash rent ground, can't take that kind of loss again
Posted by Unknown at 6:59AM CDT 07/30/14
Question Marcia. When referencing cash rent- Do the whiz kids actually use average cash rent or median cash rent? Example: 1,000 acres @ $100.00 /acre and 100 acres @ $1,000.00/acre is $550.00 median rent. The average, on the other hand is about $182.00 per acre using the same #'s.
Posted by Bonnie Dukowitz at 9:11PM CDT 07/30/14
Money solves all problems! If someone has the money they can rent or buy land at whatever value - just because they can, they have the cash. If someone does not the money they can't rent or buy land at high or reduced values - just because they can't, they don't have the cash. This is a fact of history and most current economists miss this important fact. During the Great Depression, in the 1980's and still today (money) makes the difference in what individuals can do. When some people suffer because of lack of money others with money can purchase assets even if buying them does not make sense. Most people do not like hearing this time honored fact of money! Put your pencils, calculators and computers away and understand what most economists miss - money solves all problems.
Posted by John Finley at 8:02AM CDT 07/31/14
John, most guys around here buying don't have cash. In fact some are in bad shape, but seem to find someone to finance them.Cash or not you wouldn't buy gold at it's highest knowing it is going to come down.
Posted by Raymond Simpkins at 11:53AM CDT 07/31/14
so the land owner is suppose to lower the rent,,,,is JD going to lower the price of a combine, is Monsanto going to lower the price of chemicals, are the employees going to take a cut in salaries on the farm, if they do, then the tenant can buy a new pick-up
Posted by Wally frey at 10:13AM CDT 08/21/14
Raymond, cash is worth zero to an investor.
Posted by Unknown at 8:48PM CDT 10/27/14
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