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| Outside of the usual complaining about land cost - where is this land market headed. I-state row crop numbers inbound.
Land here has returned an average of 7% annually for the last 15-20 years. Project that same return out 15 years from now... $50k an acre. Percentages are a mother when they work against you.
At what point does the average guy throw in the towel? When it takes 10 paid for acres or 100 rented to cash flow the next 1 purchased?
Or maybe I should ask at what point is this a bad investment by all metrics?
A million different ways to look at this, but if it gets to the point where it takes me an entire lifetime of crops from a farm just to recoup the purchase price... what's the point? If it's just an investment for the kids put it in a mutual fund and it should 2-4x the land value.
Just tell me how bad I'll regret not buying now and we can all be happy. | |
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Land Value - Where is this beast headed?
