For one an investment in BRK.A in 1987 average price at 3500 per share would net you 34.286 times your money today. Land investment in the Humboldt area in 1987 at 80,000 you would be able to sell for 160,000 today about double. 25 years span. A rental agreement would have paid you about 6 percent aprox.. minus the land taxes about 1 percent. Seems today renters pay land taxes not sure why.
Today the rent would not pay 6 percent of the purchase price. This is origional 1987 investment. On the origional investment of 80,000 you may have got 4800 in 1987, today your rent income may be 7600, which is like earning a dividend of 9.5 percent. 25 years later. Not sure where exactly I am trying to go with this but a business person in 1987 BRK.A would have earned one hell of a lot more than a farm investment. Most investments go in cycles, we may be wrong not to invest even now. Prices may seem high, I personally decided to purchase before the price went up. Just I think even though I will not buy land now that land is still a good investment. My opinion. To the young farmers with sharp pencils I think there is opportunity.
Today the rent would not pay 6 percent of the purchase price. This is origional 1987 investment. On the origional investment of 80,000 you may have got 4800 in 1987, today your rent income may be 7600, which is like earning a dividend of 9.5 percent. 25 years later. Not sure where exactly I am trying to go with this but a business person in 1987 BRK.A would have earned one hell of a lot more than a farm investment. Most investments go in cycles, we may be wrong not to invest even now. Prices may seem high, I personally decided to purchase before the price went up. Just I think even though I will not buy land now that land is still a good investment. My opinion. To the young farmers with sharp pencils I think there is opportunity.