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Veteran Advisor
Jim Meade / Iowa City
Posts: 2,402
Registered: ‎04-30-2010

Re: $20,000.00

Purdue has a discussion paper quoted by the U/Ill.

 

http://www.farmgateblog.com/article/1510/land-prices-what-is-driving-this-vehicle-anyway

 

"Summary:
 Increases in farmland values have resulted from higher farm earnings and lower than usual interest rates. If earnings decline and interest rises, then land prices would decline. If investors see less chance for income through cash rents, then they will not bid up prices. Current prices might seem reasonable to some and unreasonable to others, however they reflect the investor’s belief that income will remain high and investors are evaluating the market as part of their bidding process. However, when investors are using non-agricultural production reasons for making purchases, then clearer heads may not be prevailing." 

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