Nebraska aka the boondocks | I read "old money" and "profit margin" in this thread, that is it. Start adding up the dollars involved over decades and perhaps up over 100 years in some cases. Just an example of what has gone on, for the guys that binned it all and held it til summer, I have one neighbor that was in the 220 bu. range and sold most of it a couple years ago for 7.50, 2012 specifically. That is what he told, me, he farms right by me and I believe him from watching over the years. He owns and farms 1800 acres. So when he paid $11,000 for an 80. $8600 for another and a third in the last 2 years, it really is no surprise. I have heard that by York someone paid $19400, maybe it was $17000, an acre for 400 acres a year two ago. So, for the guys that owned a lot, and binned it and hit one home run after the other the last 5 years, it really isn't that hard to understand. There has to be a lot of operations that had net profits in the 3-5million range over the last 5-6 years, not including massive run ups in their land equity. If you farm and reinvest all your profits, that is just what some people do. |
$20,000/acre vs. $4,000/acre land
