More about Land Values

[ado089]

Rider,
We aren't there yet, there is no shortage of food for those that have the money to buy it. Those that can't still grow their own. I still maintain that high prices of developed land will lead to development of 10's of millions of acres in South America and Africa and even some parts of Asia and Russia. Besides that when something appreciates 270% in three years when should have only appreciated 6-15% you have to know the pendulum will swing the other way.

[riders2010]

maybe under normal situation, but there is no normal anymore for markets of anything. And things like gov rules changing for land ownership make the old rule of thumb obsolete. The world has been openned up to our farm land, I don't think some have grasped the enormous power of that yet good or bad.

[hobbyfrmr]

I agree with Ado. If a person has thought of selling
for some time and is damn near ready to sell, list
it higher than expected. In my area land is selling.
70 year old farmers selling a section at a time.

One guy sold 2 sections to one buyer. I bid on
some, he called to tell me was unsuccessful. He
chose the buyer but did not disclose name. He
said the price was ridiculously high. I ass ume that
would be over $2000.00/ acre.

Buyers are bullish, they have a positive vision for
the future. There are some new younger farmers
who do a great job, and they have only had to
manage profits.. That is a good thing.

Not trying to insult anyone, but I think newer
farmers are much more on top of their cost of
production and financial ratios. I took those Ag Ec
classes but most of the time my mind was on beer
and girls.

[hobbyfrmr]

Bucket, I am helping you fish. That blog has
people keen on owning farmland. It's a good place
to drop your line.

[buzz]

I don't think young farmers are the ones driving up the cost of farmland.

It is a romantic notion for city folks to want to buy a farm and become farmers.

This is becoming a big boys game now and it is not a big risk for an established farmer to pick up an additional quarter, even at these prices.