Thread below made me think of the impact 1031 exchanges can have on land prices.  In some cases the sales price of land is skewed upward due to the buyer doing a 1031 exchange.  For simplicities sake let's say the combined state and federal capital gains tax rate on a sale leaves the seller faced with paying 25% capital gains tax. We will ignore basis in the sold property assuming it is a minimal amount.  On a $5M sale that would be $1.25M in taxes.  Thus, there is a big incentive for the seller to do a 1031 exchange.

Let's assume the seller decides  to invest their money in good row crop land within a 30 mile or so radius of their residence.  They check real estate listings in the area and there is little, if any, land they want so they go fishing for land.  They see a farm they like and think there is a chance the owner will sell it if they are offered enough money.  Land in the area is selling for $15K an acre.  To entice the owner to sell the buyer factors in the 25% tax savings and offers them $18K an acre for the land and the owner decides to sell.  Word then gets around that so and so sold their farm for $18K an acre. 

My question is, does this sale influence the price of other land in that area when it is listed or auctioned off?