(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.)
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
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