The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project. He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.
But the land you could have bought is more valuable now, and it will continue to produce crops for as long as you own it. Your view is the short run.
The number one mistake farmers are making is buying land instead of hedging input costs either through hoarding for subsequent seasons or through buying the stocks of companies profiting from their pain (fertilizer and herbicides). I bought two years needs of herbicides, fungicides and fertilizer in October 2007. I could only afford that because I wasn't burdened with debt from having bought the neighbour out. Farming today and tomorrow will be about managing the cost base and scale was only effectively when money was cheap. Just my two bobs worth. I made more in one year of investing in fertilizer stocks than from 2 years of farming ... the trend for costs is defined and it ain't down.