Just Speculatin’

(What’s the next wave following the crash in oil? Is it food staples? Actually they have all been tracking pretty much with oil since at least 2009 although not dropping nearly as much. So the next wave? What? Besides a crash in high-yield bonds as the oil speculators shrivel up? Is it agricultural REITs? No – or at least not only them. Probably before or maybe as agricultural real estate falls, crops planted will fall and the price of agricultural commodities will rise. And don’t forget the drought in California. If that continues, the price of all groceries will rise.)

Farmers Walk Away From Leases Due to Plunging Grain Prices

Mike Shedlock
February 23, 2015

The price of corn is at a price seen in late 2006, wheat late 2005, and soybeans 2004. Land prices, lease prices, equipment prices, and fertilizer are much higher.

This has put the squeeze on many farmers, especially those who lease land. The result is best described as “walking away farmer style”.

Please consider Rent Walkouts Point to Strains in U.S. Farm Economy

If grain prices stay depressed, can lease prices and land prices be far behind?

Mike “Mish” Shedlock

Read more and see the charts at http://globaleconomicanalysis.blogspot.com/2015/02/farmers-walk-away-from-leases-due-to.html#wOyxsA3j1LjitJtB.99

Posted here by https://icliks.wordpress.com

Social media? Go where they pay you!
Free sign-up, but you need an invitation so here’s my invitation to you, below.

Join the conversation at Tsu!


About icliks

Biding my time in central ms ... yours too, if ur reading this.
This entry was posted in Crash of 2015, Famine and tagged , , , , , , , , , , , , . Bookmark the permalink.