it seems to me land values do follow crop prices,very closely.crop values go up,farmers can make more money.they can make more money ,they start hunting more land even marginal land . demand for land increases so does the price. i mean lets face it,if 20 farmers want one parcel of land selling at auction its simply worth more than a parcel of land where only one guy wants it.its simply supply and demand. trouble is the supply of land is fixed always has been. here the real problem for guys starting out.He probably cant afford those prices to start with simply because he doesnt have the cash reserve or credit. a old farmer,or shall we say a successful farmer(two different things) can simply because he has that reserve and can afford sit on it over a longer period of time waiting for the payoff. to him those loan payments are tax writeoffs. he has suffecient income to live,while a young guy with a family starting out has to make that land pay. heres a little fact for you,according to the last census,farmers,actual farmers not the so called farmers, actually decreased accross the board in the us by something like 30%. heres another fact.42% of the places in the us operated as so called farms have never made one dollar of income!,they operate in the red each year....heres you at tip to help you if your starting out..and trust me I'm not being mean or anything here. DO NOT try to make your farm pay for itself!,that will come later. for every hour you spend actually farming,spend the same hour organizing your books and keeping meticulous records.dont be afraid or ashamed to take gov tax breaks.believe it or not you dont need MY tax money to buy a place, most of the time your OWN will buy most of it! you simply give it to the bank instead of the gov! heres another tip.most of those old guys you see,have been at it for years.they got into it for the long haul and spent a lifetime aquiring what they have.very few went out one morning looked at a tractor and started making money.most have done whatever they could to survive at it.farming today is not simply feeding your family.its big buisness,and the better business man you are the more chance you have of making it.
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Today's Featured Article - The Tractor Parade: Story of a Case SC - by Bernie DeLon. On a early fall morning back in 1994, I opened the newspaper and happened to spy an article about a local antique tractor club having their annual show that weekend.
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