The price of farmland

[nwobcw]

  Last fall when I went to Ag Credit to make a payment I remarked to the manager that farmers were probably really paying things off.  He said "I dunno, they seem to be borrowing more than ever."

[old man]

The farm that I bought in 1964 cost me 22 ounces of gold at $32.00 an ounce.

Today, at even $1000.00 an ounce for gold, that land should sell for $22,000.00.

It would not bring that much

[kraft-t]

Yes, but are you considering the nearly 1/2 century of income it produced. My dad inherited a farm in the early 1930s It was valued at $100 per acre and more than that owed on it. Today my 95 year old mother is still drawing cash rent on that property at over double the original value every year.

I like to read your comments. Keep them coming.

[old man]

I was only trying to show the relationship of gold and the price of this farm.

This does not mean that the price of land is too high today.

I realize that I made a very good living off this farm. My daughter and son-in-law still do.

And I wouldn't sell it for then the tax man cometh and their livelihood would be gone

It only shows what inflation can do to values, as this ground is no better today than when my parents bought it, even if yields are greater

[old man]

And if I died tomorrow and Uncle Sam valued it in terms of my previous post, my children would have to sell it just to pay the death taxes (estate tax)

[k-289]

Not many calories to be had out of gold---

[old man]

But gold can be used to buy calories

[kraft-t]

Yeah only 5 million exempt. You could adopt me and I would borrow to pay the tax. Heh heh.

[nwobcw]

  How do you make change when handed a gold bar?