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SE Iowa | 7% return per year on any investment your money or value doubles in 10 years. So 8% appreciation/yr on land is sustainable? Give me a break. Land will come down, so will rent. Not predicting the year, just predicting the inevitable. Land very seldom cash flows but at times it has and at most times it isn't too far out of whack. Right now it is out of whack! So is machinery. I am not regreting retiring this winter.
Local land prices 1980 $3000
1987 $1000
1997 $3000 actual prices in my area. If you bought in 1980 fair chance you lost it.
2007 $8000
2017 $8000
2022 $16000
7% per year prices appreciation land over 10 years doubles
1980 $3000
1990 $6000
2000 $12000
2010 $24000
2020 $48000 an acre That 8%/yr figure does not hold water. It is unsustainable
Edited by vickruse 2/23/2024 21:30
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Farmland ownership ROI
