USA | Womp - 3/15/2017 18:14
I'm not really approaching it as what you can pay, rather opportunity cost.
Based on rents what is it a 1.5-2% return after RE tax? During the early 80's farmland cap rates got down to around 1.6% and then later after the crash re-aligned closer to 5%. So do you think Rents/Profitability is going to go up or values come down?
You are wrong about the 80s. Land got to the point it would not gross int cost per acre. We are along ways from that type of situation currently in ILL. Heck crop ins guarantees in ILL supports higher land values to get on par with things @ the peak in the 80s.
229.54 bu TA corn yield x 85% x $3.96 acre. = $772.76 acre . @ current int rates got a ways to go on the upside yet to get in the same boat as the 80s.. That TA yield isn't very far from the dirt that just sold.
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Land values
