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southern MN | Seems like a trick question. :) I believe land prices will continue to go up for a couple years, not as dramatically as they have the past 24 months.
I do not believe in 'plateau's. I believe land prices will continue to swing above & below a line closely following inflation. Sometimes those swings can be dramatic, but in either direction. The trend will follow inflation given enough time.
Land is adjusting it's price to world demand & grain supplies. Someday we will have lots of grain & the USA dollar will be high in value & people will be complacent about food & ecconomics will not favor ag land investment, so it will drift quite lower again - relative to other things. Governments of the world will change policies to ensure food is cheaply priced, and that will always pull crop value below the trend of inflation. For example all the USA has to do is end the CRP & you will see crop & land values drop like a rock.
But in the next few years, my guess is ag land will drift higher some.
--->Paul | |
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Farm Land Prices--UP OR DOWN next few months?
