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Can anything stop this land market???
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Oliver1
Posted 11/17/2012 08:57 (#2701810 - in reply to #2701566)
Subject: Re: Can anything stop this land market???



Alton, Ia
It depends how you define "poor land". A.) If a piece of ground ALWAYS yeilds less than average, for example 75% of your neighborhood average, or so, then you are correct. Or B.) If a piece of ground sometimes is average, sometimes above, and sometimes below, for example it's "poor land" because it's heavy, and poorly drained, in a drought it may yield incredibly well. Or if it's sandy, in a wet year likewise. And then vice versa for each soil type and weather combo. In those years, subsidized crop insurance takes more than normal risk off the table, because of the subsidy, and thus, since there is less risk, the ground will get bid higher.


There is far more of the type B ground around than the type A.

Edited by Oliver1 11/17/2012 09:03
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