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Jesup, IA | The whole "Land Rent Survey" system is deeply flawed. Very biased to reporting higher values. For example:
- Real career farmers tend to have several landlords, all of whom pay taxes which keep the University System and the Extension Service in business. So the survey takers want to please the majority to keep the spending of tax dollars unquestioned, and their cushy desk jobs secure.
- University Ag Professors tend to be people who like farming, came from a farm, but didn't do it for a career. They inherit farms and want top rent for them. Hence, the high numbers are the ones they favor.
- The system gets more responses from farm managers, realtors, bank trust dept managers who get a percentage of the rental price. A 6% commission on a big number is better than a 6% commission on a small number. Reasonable family and long term trusted tenant deals don't fit the biased agenda.
In addition to the surveys being biased to reporting higher priced transactions, they do very little to explain differences in pricing because of drainage, topography, markets and basis, and payment terms (all in advance, all in arrears, etc.). It's clearly a system to data mine to find the highest reportable statistic and inflate values.
Edited by Ben Riensche 11/6/2015 13:53
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Land Rent Survey
