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Northern Illinois | I think at the end of this paragraph -
What jumps out to me is how that ratio falls during periods of excess, and rises again during periods of strife. I'll bet if I actually wanted to dig deep and analyze this ratio more accurately I'd find that for my area the average ratio might be around 12-15. What does that portend? If we extrapolate another 10 years out to 2024. The average wage should be about 62,000. And we took that 62,000 and divided it by the ratio of 12-15 we might be looking at an average land price about: $4133-5166 in 2024
you should add "in my area" because that is the qualifier you used earlier in the paragraph.
It is also entirely possible that that ration changes over time.
or
From '64 to '84 the average wage went up ~ 75%. It is possible it goes up that much again and the ratio stays around 5.6 so the average land price would be $14,066.
or
because there really is no consistancy to the ratio's that the average price of land and the average yearly salary really have nothing to do with each other.
My bet would be that the average yearly salary of an off farm job and the price of farmland have nothing to do with each other.
I could see a study like this with the average yearly salary and the average price of a new home having some consistancy.
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Avg wage in relation to farmland values
