Deep pockets full of cash or people with high "off farm" earning potential skew the values. I've never really done the math but can that land pay for "itself"?
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The owner of Redlands has very deep pockets very deep and he's a nice guy!
I Like the one about Alberta at 4000!Comment
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The price is of course whatever someone will pay. I'm not sure if it's ever been relevant to its productive value, at least not in my career. The better question is how many paid acres are supporting the debt on it. Your $110 is currently in our rental range on 50ish bushel land.
4th generation businesses. Generational equity transfers, life insurance etc. Successful off farm patch businesses.
Relatively stable cropping area. The price will not be going down any time soon! Even though there will be only 5 outfits within 15 miles around. There is outfits with fixed costs $100 per acre less than others. Throw in some 1950 dollars and you can farm below cop for 10 years. That's what it will take for it to fall %30. Or for rents to fall below 3 to 4 % of market value per acre. By then I won't be around.
Simply supply and demand. Hope it goes to $10,000.Comment
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Sask. If you don't believe 4000 come on over.Comment
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The wild card might be all the land that will be inherited by city dwellers in the next ten years.Comment
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To say behind may not be fair. In one way you were once but no longer. The size of your "average" is ahead of us. You have a large area where conditions can get extreme that drives that. Less population in general to want it or inherit it.
Maybe we have further to fall when a shift occurs. Money does strange things. Ask a non farming family member who feels a transfer deal done 10 years ago is "fair" today.
Speaking for my area only.Comment
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