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rent, economies of size, and government payments
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Pofarmer
Posted 8/19/2007 19:55 (#189810 - in reply to #189764)
Subject: Re: rent, economies of size, and government payments



"#2. I don't think land prices will go down too much since there is no more being made. "

Land values cycle up and down, always have, always will. Some numbers for MO. Notice that there are two times on the chart where land prices fell in half in the census period. Maybe we are immune to the cycles now, but I wouldn't bet on it. Yes, values are trending up, but they still cycle.

Number Land Avg. Size Value of
Year of In of Land & Bldgs
Farms Farms Farms per Acre
-acres- - dollars -
1850 NA 84,498
1880 2,538 373,086 147 13.37
1900 2,770 415,223 150 27.57
1910 2,734 426,550 156 55.93
1920 2,521 418,834 166 109.37
1930 2,197 391,225 178 46.14
1935 2,389 414,829 174 25.64
1940 2,107 407,788 194 26.97
1945 2,061 406,709 197 38.46
1950 2,151 406,750 189 63.90
1954 2,032 417,759 206 115.25
1959 1,758 413,729 235 166.43
1964 1,582 406,155 257 211.46
1969 1,584 422,199 267 283.22
1974 1,379 415,107 301 500.00
1978 1,342 410,419 306 1,001.00
1982 1,256 415,307 331 1,066.00
1987 1,119 399,154 357 686.00
1992 1,035 377,059 364 802.00
1997 1,005 382,474 381 1,193.00
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