Kettle Moraine, WI | jd8850 - 5/6/2024 05:50
A lot of dumb farners/investors out there if it's only worth what it will produce.
The last time it sold for that amount was the late 30s and after World War II
I wonder how many trillions of dollars of farmland has sold for more than it will produce.
A lot. Perhaps all of it.
Land purchases have always been subsidized by:
Other income/jobs
Paid for land
Rented land
Cash money.
Too many people know the price of everything and the value of nothing.
Price is not value. How the market values it relative to effective value determines price. You can overpay on some assets and still make money selling to someone who pays a higher price than you are willing. It doesn't mean the real value changed. Price is a function of future expectations.
Think of it this way. If all of an asset came up for sale, prices would not be the same in a restricted market. Did the earnings value change? |
land values if/when America economy defaults/crisis
