| dpilot83 - 2/11/2015 07:07
How many years of production does it take for an acre of land to buy itself? In other words in 1970, how many years would it have taken to produce 375 bushels of corn at average yields at that time?
How many years would it have taken to produce 900 bushels in 81?
How many years would it take to produce 3000 bushels in 2015?
I am sure the number is still going up dramatically but I would imagine it's not as dramatic as your illustration makes it seem because yields have likely increased substantially in that time period. i was only 10 in '70, but our yields were about 100 bu. I remember '81, was 145 avg., 2014 was 165, granted weather knocked it a good 20 bu. on the avg. I really would not want to have to pay more than 9 crops value per acre. I also would not really like to have to pay over $200 for rent; but we know in both cases that those numbers are where it should be, but goes for much higher than what it should be-For now anyway- the DotCom bubble burst too when Wall Street figured out they weren't making any money. Total collapse in value, and it happened quick. Look at how quick the machinery bubble deflated. But there are those that stiil believe land is different now and immune to outside economic forces; I'm not one of them. |
Avg wage in relation to farmland values
