Here’s a funny one - side topic - since farming & farms are almost my sole source of income & a topic I deal with every day…. Buyers, sellers, farmers, owners, investors, etc. I’ve owned land since 2001 (saved $ - since about 1991 when my uncle died & land was sold - from my lawn mowing business I started that year at about 11 years old). It’s interesting seeing these cycles.
Observationally, In 2013-2104 a lot of folks I talked to were doing 3 things: dozing out every last acre they could get, paying far higher prices on ground & THE FUNNY ONE…. “How much to buy out the CRP contract so I can farm it?”
2015-2017 had a cool down of rent/commodity prices. About half the previous corn/bean prices of ‘13. Good # of folks got some tillable into crp at great rates saying “dang man, my rent & income is down, I gotta put in crp!” Some held out & didnt enroll. I knew a lot of folks who were at the $300 mark on crp who decided to continue to rent it. When cash rents got to $150- they kicked themselves for not enrolling.
Then- 2 years ago, as prices were still low “new crp sign up!!! I’m enrolling - even though it’s a low rate!!!” I did some of that myself. Ha! Literally within 6-12 months - commodities spiked fast!!!!! Most who enrolled were kicking themselves. A lot canceled their sign up. A lot asked the same question “how much to cancel the 1-2 year old contract?” & some paid $ or just cancelled. Now the crp rate is back up & same folks aren’t enrolling “I want higher cash rent”….. the cycle could repeat. It’s ironic!!!! **i signed in some rough stuff at lower rates. I didn’t pull it. I’m not playing that game. It did cost some $ opportunities but oh well. It’s great for rough soil to have a 10 year break, enhance wildlife & build soil. Wish I would have held out for higher rates but who could have predicted?!? Just crazy.
The good news!…. I sold one really nice farm after I found some great buys on several Hunter Biden Art pieces …. Probably the only better place to have funds in this market!!
