“Yeah, you can buy dirt...
And thank the good Lord for it...
‘Cause he ain’t makin’ any more of it.”
The lyrics above are from the 2021 hit country song “Buy Dirt,” which voices a mantra that lives within every farmer, because those who farm view land as more than a commodity: It’s their livelihood and legacy. According to Farm Journal, persistently high interest rates are a key reason. The current agricultural downturn owes its roots to many reasons: low commodity prices, high input prices, tariffs, trade disputes, etc. An Iowa corn farmer pencils out a purchase on quality farmland priced at $11,467 per acre. Current financing is at 7.6% interest the annual debt service alone costs $777 per acre on a 30-year loan with 20% down. Total production costs, excluding land costs, reach $595 per acre. Here’s the devastating math: the same acre generates roughly $814 in gross revenue from corn. For a total net loss of -$558 per acre. Renting identical land for $271 per acre results in a $52 annual loss per acre.