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| From 1951-2006, annual returns to the stockmarket have averaged 12.5% (i.e., 9.1% growth and 3.4% dividend). During the same time period annual returns to cropland in 39 states (the "ag" states) averaged 11.6% (i.e., 6.5% growth and 5.1% dividend -- rent). Average returns to non-land assets in farming are lower than land returns for the average farm. But, the top third of farms in Kansas (top third not selected each year but in a many-year setting) get non-land returns that are considerably higher than either land returns or stock market returns. Of course, once you talk about market timing (e.g., is today a good or bad time to invest?) for either the stock market or for farm land, all bets are off and anything goes. Generally, I don't care much about the timing issue since it is most difficult to do. That is, I view both stock market and land investments as something that should be long term, where highs and lows can average out over time. Put another way, ex post I can easily find time periods when one investment beat the heck out of the other. For example, during the 1960s and 1970s (a 20 year run), land returns were double those of stock market returns. Of course, it is easy to find opposite periods as well.
Terry Kastens, ag economics, Kansas State University | |
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- rent, economies of size, and government payments - tkastens : 8/18/2007 01:11
- RE: rent, economies of size, and government payments - coup : 8/18/2007 08:07
- Economics of size. - Hay Wilson in TX : 8/18/2007 08:39
- RE: rent, economies of size, and government payments - Pat H : 8/18/2007 08:57
- Re: rent, economies of size, and government payments - Pofarmer : 8/18/2007 09:57
- RE: rent, economies of size, and government payments - Cliff SEIA : 8/18/2007 12:55
- Re: rent, economies of size, and government payments - Steve in SD : 8/18/2007 15:20
- Re: rent, economies of size, and government payments - paul the original : 8/18/2007 16:02
- How dare you tell the king he is naked..... - John Burns : 8/18/2007 18:12
- Re: rent, economies of size, and government payments - Steve in SD : 8/18/2007 21:05
- Re: rent, economies of size, and government payments - Steve in SD : 8/19/2007 09:45
- RE: Sorry Terry I meant you not Ted, don't know where I got Ted - Steve in SD : 8/19/2007 10:06
- Re: rent, economies of size, and government payments - tkastens : 8/20/2007 08:18
- Re: Thank you administrators - plowboy : 8/28/2007 21:46
- Ditto,,,,,,,,,,,,,,,,,, - eddiedry : 8/28/2007 22:07
- Re: rent, economies of size, and government payments - wheat farmer : 8/28/2007 22:24
- Re: rent, economies of size, and government payments - Steve in SD : 8/30/2007 19:11
- Rent vs own - Les NCKS : 8/19/2007 10:10
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rent, economies of size, and government payments
