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EC SoDak | I’d imagine it has a lot to do with the generation that’s buying now (well, continuing) grew a land base on cheap ground due to an ag depression. Then got fueled by more global grain trade and the advent of a massive ethanol industry. When you have paid for cheap ground and grain prices rise the way they did the last 20 years, you’re making some serious dough if you’re keeping a sharp pencil. Where do farmers normally park that money? Land. The interesting part will be what land values will do long term. Between green environment initiatives and the move to electric vehicles, taking away ethanol demand, coupled with increasing yields and possible lowering demand, what will grain/land prices do?
What’s interesting in my area, as I’ve mentioned on here a few times, is almost all the land in this last run up has been bought by non farming investors. Rent ROI couldn’t possibly be their reasoning for the purchases as it’ll settle around 2% minus land taxes I’m guessing.
Edited by SoDak Farms 3/23/2024 14:06
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Has the game changed?
