Posted by sourgum on February 05, 2012 at 09:12:43 from (166.203.138.119):
In Reply to: Land prices? posted by WJD on February 04, 2012 at 17:58:33:
Grain prices have a significant effect on land prices, as they go so goes bare agricultural land. And commodities prices cycle up & down to some degree.Look at ethanol as one influence on corn price. Experts say about 39% of corn produced in this country ended up in those e plants. Not saying that is good or bad, just saying.You can watch how many of those plants continue to need corn and keep buying. Right now gasoline demand is 5% lower that it was the same time last year. Means less ethanol is needed. Some e plants might have to do a temporary shutdown if gasoline demand stays down, probably lower price of corn. Then other things like growing season weather affect prices and that cannot be predicted. Like previous posters said interest rates will play a role.To a degree what is brewing over in the Mideast with Iran will affect gas demand, prices and filter down to ag commodities then to land. Too many variables to say with certainty but reasonable price land may be in our past now.
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