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USA | Outside investors are not driving the land market in this part of IL. Most of the ground that is being bought is bought by farmers. What is differnt than 70 -80 timeframe, is ground that is bought today, is either with cash, or low debt to asset purchasers. Pretty hard to shake a person out of the saddle if debt on land is 10 - 20 % of current values.
I would expect those that rent ground in the next few years to get squeezed even more by rising rents or worse more landowners going to custom farming.
Don't understand how a person thinks renting ground vs ownership is more profitable over a 30 year time frame. History would argue otherwise. Principal part of a land payment is not an expense, but an investment in one's operation. Rent and taxes are the rent part. Are interest and taxes less than rent cost? From what I have seen answer would be yes. About the only time farm land would not cash flow interest and taxes was the 70- 80 time period at the peak.
Edited by coup 8/17/2010 07:49
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Land Values....
