Posted by agpilot on August 20, 2010 at 05:52:39 from (173.84.16.52):
In Reply to: Re: land auction posted by John T on August 20, 2010 at 04:43:41:
Hi John T: Your are not adding in the fact that the "value" of land is leveraged to the price of crops taken off that land. If the price of corm would go from $3 to $6, as an example, you would see the price of land go up a huge amount. Example: In SW MN during the 1950s corn was $1 and land was $250..( aprox example) Now corn is $3.50 and land is $5,000.. Plus the farmers are betting they can get 185 bu/acre rather then 90bu and that having more acres farmed with higher power equipment will cut labor per acre and etc etc so the farmers pay higher land prices.. Simple idea is land is leveraged to "hope for the future." ag ret.
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