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Cash Rents
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Kooiker
Posted 6/23/2017 19:17 (#6086604 - in reply to #6086002)
Subject: RE: Cash Rents



Property taxes have next to nothing to do with how much ground rents for.     Crop yields/prices and other input prices determine where rental rates go.


Think about this for a few seconds.

If Nebraska raises their property tax to $500/acre and corn prices are still around $3 what are you going to be willing to pay for rent?

Do you really care that the landowner isn't getting a good ROI?     Or are you basing what you'll pay for rent on what you can afford and still have an ROI?



Property taxes do have an impact on what ground sells for.




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