northern MN | "I'm trying to think of other business that would be upset because their asset values increased. Most businesses do everything they can to generate value. It goes back to the mindset that farming is about a live style instead of running a business to generate as much profit as possible and that is why we are always getting the handouts. Rinse and repeat"
The problem with this train of thought is that the inflated value is unsustainable. When the asset exceeds its ability to pay for itself it is overvalued. There is nothing good about land valued at 20 X earnings. This is what keeps younger farmers from growth or entry. I am guilty of many of the comments, I've also suffered many of the comments. But I refuse to lie to myself and say overly priced land is a good thing. |