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| sand85 - 1/23/2019 19:49
So, interest rates are climbing. What should land values be now?
Seems like a year and a percentage point ago the ROI calculator said the price was in the 8k range based on income, for the stereotypical 200bpa corn/65bpa soybean farm?
Does that suggest the prudent retiree, whose land is eventually for sale (no farming heirs etc), look at locking in today’s price before the market adjusts? The short answer to your question is most likely yes, at least on some of it anyway. Sell the most high basis parcels to minimize taxes. And the answer to what should the farm You illustrated be worth today is thus; The 1% difference reduced its value down to $6,095. And that’s assuming the rent stays the same. If the rent goes down, it’s gets much, much worse yet.it would prolly be prudent to take advantage of the anomaly.
Edited by Boone & Crockett 1/24/2019 06:40
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Stock market, interest rates , opinions?
