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Can you say Farmland bubble! 10/16/2012 @ 3:59pm The people who are paying these prices are going to get hurt really bad financially. I don't think our government should bail them out either - its their own fault for paying 30 - 40 times the average annual return to land. Very foolish indeed, but its all propped up by FCS who will loan huge amounts of money to any farmer with a pulse. Farmers around here are borrowing their brains out to buy land. I keep reading in the trade publications that these are all cash deals. I don't believe it based on what I see around here people are stretching and theirs lot's of debt piling up right now as farmers borrow heavily to chase overpriced land. What's the floor after this bubble pops? If interest rates go up just 200-300 bps we're talking at least $1K an acre loss in value. Farm margins are getting squeezed, RFS is under attack, huge grain supply increases in SA, decreased farm subsidies, what could go wrong?

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Re: Re: Can you say Farmland bubble! 04/13/2013 @ 10:57pm And my revised guess on the impact of 200-300 bps increase in interest rates is more like 3-4K off the land price BTW. Don't forget the impact on the operating loans!

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Re: Re: Can you say Farmland bubble! 04/13/2013 @ 10:54pm Updated post. Make that 50 - 60 times annual return to land (pre-tax) as of Q1-2013. Insane! This is going to end very badly.

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10/09/2012 @ 2:17pm You must not be doing it right! Chad

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Dumb 10/08/2012 @ 9:52pm Really dumb to pay that much anyone who does I hope they fail badly.

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