Posted by LAA on November 09, 2014 at 07:11:32 from (86.51.147.113):
In Reply to: Re: OT: farm land rent posted by MarkB_MI on November 09, 2014 at 02:31:24:
Most land prices have not been in a reasonable ratio to production potential in many years but that is because there is plenty of non farm as well as farm money chasing the average acre and also, in some areas such as mine, because of inflated and illogical government payment amounts per acre which has the effect of reducing the amount of land for sale. Cash rent is a completely different scenario, if the rent is so high that the renter cannot make a reasonable profit he would be foolish to rent unless he is only interested in tax relief, alternatively, a buyer can pay an inflated price as long as he has other income or paid for ground to subsidize the purchase. I bought and paid for most of my land and cattle pyramidding off the cash flow of the owned assetts to double down paying for the newly aquired.
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