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Holly Grove Arkansas | Most land was debt free in the 80's. Very little, as a percentage, changed hands during the period. Land prices fell because margins collapsed. Land price is going to reflect margins and returns from investment alternatives. We can debate endlessly where margins are headed without a definitive answer because no one know for certain what the future holds. What I can guarantee you is if margins were to collapse like they did in the 80's so would land prices. Doesn't matter if every acre in the country is debt free and the landowners have millions in cash, people wouldn't pay $10000 an acre for land if average margins before land cost was $100 an acre and they could get , say, 5% from treasuries. | |
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Question for Coup-farm bill, land prices
