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EC Kansas | Poor/low cash returns aka dividends on the investment cost. See OP If low farm income/cash return to land declines and stays low, land price will come down to meet cap rate required by “investor”. They (investor) won’t pay $20000/acre if cap rate yields a $12000 price.
They won’t diversify for diversities sake unless there is an acceptable cap rate associated with the investment amount. They will sit on their cash or “invest” in acceptable alternative investments.
Don’t worry, those pesky investors are not going to buy all “your” farmland just because. | |
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Top is in the land market (look out down below)
