The IOWA FARMLAND rush continues on...........

[Brad1970]

[ QUOTE ]
Fishhead,

Farmland in Argentina and Brazil have greater yields than in the US and costs about 1/10 the price. These countries dominate the soybean, coffee, and sugar export markets and any other market they decide to enter. It's no surprise that their agricultural exports to emerging markets are booming (they maintain a huge trade surplus with China, the exact opposite of us). US farmers are quite frankly getting their butts kicked by the South Americans despite the fact that they get billions of dollars in handouts from the US government.

Which farmland do you think is the better place to invest in?

Let's be honest for one second here... The US farming industry is uncompetitive in the global marketplace and would go broke if not for handouts from the government. Did you know that our government actually pays US farmers billions of dollars in taxpayer money NOT to grow crops so as to artificially restrict supply and pump up prices?

This is just my opinion, but the US agricultural industry is a complete abomination and should be abolished. We should import our food from South America like the rest of the world. US farmers can go get jobs as Walmart greeters for all I care. The idea of investing in this "industry" is ludicrous to me.

[/ QUOTE ]

Laserboy, do you have any idea why farmers in South America are "kicking our butts" as you say?? Or are you just spouting rhetoric that you read off of some website??

BTW, the world would starve without American farmers.

[laserboy]

[ QUOTE ]

Is your reasoning one of ethics or fear?

Would you have had the same reasoning 5-10 years ago?

In 1999, the average cost of land an acre of Iowa farmland was $1800 and eight years later it is above $5000......and going higher(in my opinion). And remember, this is land you are making 4-7% on cash renting every year to boot.

Personally, I've only recommended buying farmland for the past two years. Two years ago there were many, many skeptics also such as yourself and meanwhile in those two years, Iowa farmland has appreciated a minimum 30%. Now I fully understand past performance is no indication of future results, but there is still a tremendous upside to this market. Would I put all my eggs in this basket, of course not.

By the way, corn and soybeans are in a very bullish trend right now, with beans approaching $8.50 and corn $4.30 and these are the two main crops in Iowa.

Think about this for a minute also, the states of CALIFORNIA and FLORIDA have a grand total of only two service stations that deliver E-85(85% ethanol fuel) currently. Two years from now do you realize what this number is going to be? It will probably be in the thousands! Right now as we speak, my guess is less than 1% of the US population knows what E-10 or E-85 is.............this is about to dramatically change in the next 6-24 months.

[/ QUOTE ]

The Brazillian stock market is up 230,000% in the past fifteen years! Top that!

And my reasoning is more out of disgust at the fact that I get to spend half my income on taxes for government subsidized nonsense like your ethanol program. On top of that, I get the privilege of paying twice as much for food as the rest of the world. The US agricultural industry is a scam.

[laserboy]

[ QUOTE ]

Laserboy, do you have any idea why farmers in South America are "kicking our butts" as you say?? Or are you just spouting rhetoric that you read off of some website??

BTW, the world would starve without American farmers.

[/ QUOTE ]

The same reason that the Chinese are kicking our butts in manufacturing? They have cheaper land, cheaper costs, and cheaper labor. They also have better work ethic and business sense. Oh yeah, and they have better land and year round rainfall. Does that about cover it?

I know this is hard to imagine, but farmers in other parts of the world are actually able to make money by growing food at an economically viable price and then selling it to other people for a profit (as opposed to making money by defrauding taxpayers or apparently flipping real estate, like it is done here).

BTW, the world would have cheaper food and less taxes without American farmers.

[Fishhead24]

laserboy- with your reasoning, you should be fully confident with investing in this land market.

Also, I take it you do not live in the USA.

-FH-

[Fishhead24]

By the way, crude oil is closing in on $70 today.

Corn, beans, and oil all moving up ..........this is very positive for land prices. I hope most here realize this contributing factor in this land boom.

[laserboy]

[ QUOTE ]
laserboy- with your reasoning, you should be fully confident with investing in this land market.

Also, I take it you do not live in the USA.

-FH-

[/ QUOTE ]

I live in the USA, but yes I am confident in investing in these markets. I'm not just speaking after the fact either, I've been an agriculture bull for several years, certainly before the current ethanol craze.


What international markets would you invest in?

[talentdeficit]

[ QUOTE ]
If we do see $6 or higher corn, and "beans in the teens", his Iowa farmland play will be right.

[/ QUOTE ]

we won't see $6 corn anytime soon. it can be produced in large quantities hydroponically for less than that. it will require a large outlay of initial investment, but if iowa farmland keeps going up, we will see it happen.

[AggroFish]

Boy would I love to get my hands on the list of people you've sold IOWA FARMLAND to fishhead...How much would I have to invest to get your client list?

[Brad1970]

[ QUOTE ]
[ QUOTE ]

Laserboy, do you have any idea why farmers in South America are "kicking our butts" as you say?? Or are you just spouting rhetoric that you read off of some website??

BTW, the world would starve without American farmers.

[/ QUOTE ]

The same reason that the Chinese are kicking our butts in manufacturing? They have cheaper land, cheaper costs, and cheaper labor. They also have better work ethic and business sense. Oh yeah, and they have better land and year round rainfall. Does that about cover it?

I know this is hard to imagine, but farmers in other parts of the world are actually able to make money by growing food at an economically viable price and then selling it to other people for a profit (as opposed to making money by defrauding taxpayers or apparently flipping real estate, like it is done here).

BTW, the world would have cheaper food and less taxes without American farmers.

[/ QUOTE ]

Farmers in South America have traditionally used a lot of manual labor to grow crops. The ones who did have mechanized equipment had American leftovers from the 60's & 70's. What do the vast majority of American farmers use nowadays?? The latest & greatest thing available, probably 5 yrs old or less. So, yeah I agree with alot you said about their labor cost, equipment costs, rainfall, etc. But it's your attitude that's way off. Why are you so down on the American farmers?? We raise way more agricultural products as a country than Brazil. Why do you think we are called the breadbasket to the world? You stated you were bullish on US agriculture...doesn't sound like it to me. Sounds like you have an axe to grind about something?

[Brad1970]

[ QUOTE ]
[ QUOTE ]
BTW, the world would have cheaper food and less taxes without American farmers.

[/ QUOTE ]

You think so?? You are sadly mistaken. We have really cheap food compared to the rest of the world.


FWIW, the US farmer has always wanted a fair market price for his product & not be subsidized by the gov't. But, to remain competitive in the world market & to keep our food costs down, the USDA has to offer subsidies. If they are taken completely away and the US farmer went belly up & we did have to import all of our food like you want to do, then food costs would be just like the price of oil right now. You think the cost of a gallon of milk & a dozen eggs is high now!!!


Less Taxes??? Farmers make up less than 1% of the US population...how is 1% going to affect your taxes?? Explain this to me because I'm having a real hard time understanding this.

Want your taxes to go down...Tell that to Bush & his war in Iraq. They're only spending $10 billion a day over there so the oil company exec's can line their pockets a little more as reimbursement for getting him re-elected. The ol' "you scratch my back & I'll scratch yours." But that a whole different argument.