The buyer of $16k farmland knows raising corn or soybeans will never pay for that farm
Typically, farms sold are to settle an estate. There are usually several established operators interested. They are people who have several quarters,some inherited, some bought years ago on the cheap.A lot of corn in the last 15 years has been sold for $7-$8 a bushel,they got money and know how to hang onto it.
So the farm across the road comes up for sale,one big guy doesn't like the other big guy,there's a bidding war.The sellers and auctioneer are smiling !!!
I was watching a farm show recently, they interviewed a guy from back east who had set the national record soybean yield,216 bpa.He was asked if he made any money,he replied that the beans were contracted for $14/ bushel ,it cost $1400/acre to raise the crop.
That's not bad,smart guy!
