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nc ks | there is not an exact science to it that I know of and no formula that can arrive at a fair rental based on what the land value is. It would never pencil to buy a piece and then rent it unless you were counting on the value increasing. However, if farmers are pursuing land at auctions and they are raising the price, the cash rent in the area is also likely to increase, so renters better be on their toes. Just a general idea. Landowners have 2 options if they don't want to farm it themselves, rent it or sell it. If land prices are escalating and rents are stagnant, it might look appetising to sell it. I would rather pay more rent in those times than try to chase buying land on a possible bubble. SOOO....... I base some of my rental rate decisions on the changes in price of land. Thats it, it is not the price of land, but the changes in the price of land. If the price of land in your area is totally based on outside investment, it might not mean anything to you. Around here, there is still usually farmers at least bidding on it up to where it sells.
Edited by kb ag 12/21/2008 16:30
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Does Loyalty matter anymore?
