Heil Harvesting, Ulysses KS/Limon CO | I cannot argue any of that. And I too have no clue as to the value of the land. But I watch our area and what people post on here and the values do not seem to be decreasing. The price of farm ground around here three years ago, or eve two years ago (when grain prices were at their high) has seemed to appreciate. The high numbers then seem to be the norm to the low now.
Now, I have not actually done research. But that is what it seems. Quarter of dryland brought an all time high price for the area this summer. A 10% increase from what a similar quarter of dryland sold for two years ago. It at the time sold at a 'local' all time high price.
For the record, both quarters were bought by producers. As always their were investors present at that sales. Neither piece of ground adjoined anything currently farmed by the buying producer. The ROI in my opinion will be too low to make it work. ROI however seems to be small in the land value equation at this point IMO.
My take on those ground sales were buyers with cash hedging inflation. Again, the separation of producing and land ownership.... |
Someone explain to me how a 1031 exchange is good for farmers...
