Posted 1/6/2025 19:12 (#11044334 - in reply to #11043652) Subject: RE: Sand 85. Great post and worthy of discussion
Mark in WCIowa - 1/6/2025 11:28
ricefarmer14 - 1/6/2025 11:19 I think the point is that assets and investments should work for you. Many farmers myself included look at total profit and say that was pretty good where we should always be aware of the opportunity cost of capital. Many dividend stocks return 5%, 7 month to 12 month CD rates here are around 4-5-4.7%….
Now. Not 5 or 10 years ago. Could barely get 2-3% then.
Correct, but that still doesn't explain why guys are still paying $20K+ for farmland while cash corn and beans are $4.40 and $9.30
The cost to own an acre of $20k land is $900 + property taxes, per year. That doesn't pencil too well.
And before anyone jumps on me wondering if I'm selling out, no I'm not selling out but I'm not looking to buy either. Any money that is available can be invested somewhere else for a much better return.
Sand 85. Great post and worthy of discussion
