cancel
Showing results for 
Search instead for 
Did you mean: 
k-289
Senior Advisor

Land Ownership

Interesting  article  S  F  about  land  ownership  -  -  -  Seems  the  largest  holder,  USA,   was  omitted  from  the  conversation ,  640  million according  to  wiki  -  -  - 

0 Kudos
12 Replies
BA Deere
Honored Advisor

Re: Land Ownership

Isn`t it a good thing that the government owns parks and wildlife preserves?   Not to be a "socialist" but it would be a bad thing if a private individual owned the Everglades and drained it and planted sugar cane.  

I`m doing a lot of wondering about this farmland of where this is all going.  It`s like a Monopoly board game where once a player gets a certain number of houses and hotels, the prices to buy more are inconsequential.   That large volume makes profit & cashflow not even part of the decision to buy more.  Where as a smaller farmer has to figure out how to pay for a new purchase.  

I don`t see a scenario where farmland goes down .... ever.   If it would there is hot money out there that would snap up the bargains.   Interest rates, if they could rise, it wouldn`t be an effect as was in the 80`s because of the cash money out there.  So, I`m afraid these lists of largest landowners will continue to become a more & more exclusive group.

It is like the "Pork Powerhouse" lists of 400 largest pork producers.  A fun comparison of 1990, 2000, 2010 and 2020 to see the changes in hogs and the same will/is happening with land ownership.

0 Kudos
ddtfarm1
Veteran Contributor

Re: Land Ownership

I think what you are discretely looking for, and not saying it out loud, is regulation that doesn't put all the assets into the hands of a limited few, no matter what the asset. Is that socialism or is it regulation that could be guided by the words in the Preamble to the Constitution?   

Tags (1)
0 Kudos
BA Deere
Honored Advisor

Re: Land Ownership

I know this couldn`t yet happen for a number of reasons.  But theoretically, there are 30 million acres of farmland in Iowa @ $20,000/acre  ($600 Billion) one man Elon Musk (currently worth $500 Billion) could just about buy all the farmland in Iowa.   You can plug any of the billionaires and any numbers of land prices and come up with scenarios where ginormous tracts of land could be bought and held forever.

Even if wealthy farmland investors wouldn`t make up a substantial percentage of land, it would still put a very high floor in the land market.  

A friend of mine says in the 70s and earlier the property tax structure in Iowa was such owning over 500 acres became very cost prohibitive.   I don`t recall that or if it is correct, but there will come a day with 100,000 acre owned farms in Iowa and before it gets to that point, the conversation should be had if that is a good idea? 

Right now I know farmers who own over 3,000 acres @ $15,000, probably networth north of $50 million.  It wasn`t that long ago owning 800-1,000 acres was worthy of a double take.   Oh, I know by looking behind this curtain there will be accusations of "Oh sure if capitalism isn`t working for you, you want to move the goalposts". 

 I don`t know the answer or if there is one, but if opportunities become unreachable, then what we fear the most becomes probable.   

WCMO
Senior Advisor

Re: Land Ownership

You would have to look back pretty far in our history to find a time when capitalism was totally "unbridled".   Our founders and others have always recognized this potential danger from the extremely affluent, corporate schemes, etc.

 

 

0 Kudos
k-289
Senior Advisor

Re: Land Ownership

Although ,  if  18,000  acres  in  Washington  State  wasn't  a  large  enough  holding  to  survive  -  ?  ? 

 G  I  G  ,  greed  is  good , leaves  the  question ,  where  is  that  point   - ?  

0 Kudos
BA Deere
Honored Advisor

Re: Land Ownership

I doubt anyone gets to be a multi-billionaire by accident.  They look at farmland as just another ""Bitcoin or Apple stock or Tesla"  something to turn $100 billion into $1 trillion and "If i don`t buy it, someone else will".  And farmland is a widow & orphan investment that in the past years has yielded like a hot high tech stock ... best of all worlds .  "people gotta eat.   And they ain`t makin any more of it. Buy Buy Buy" .

sw363535
Honored Advisor

Re: Land Ownership

First of all, lets not make the mistake of insinuating that ownership of land creates wealth---- that is not the case.

Second of all, lets not accept the bait that this writer dangles out there in his class warfare attack.  I am certainly glad to know that those with large wealth are willing to manage highly unprofitable arid land masses.  And they get these large tax breaks for sounding "environmental", its ok, because in many cases these large ranches are managed far better than the forestry service manages its "ranch" acres in Colorado.

Third, lets try to forgive the fools that run SF for allowing this foolishness in their agriculture publication, when it has very little to do with agriculture.  (as well as having nothing to do with marketing at all.)

Fourth that comes to mind, It is an investment in our Country, that will possibly devalue.  Yet will be far better than most of the investment options available including federal funds or public bonds.

Occasionally one of these is making it possible for a family owning remote risky crop production to sell out or settle an estate with some pride left on the balance sheet.

How many of those 100 made their fortune in "Successful Farming"....... Probably less than 10 or possibly 5.

How many of those made their fortune in the demon activities defined by Education as the rape and pillage of natural resources.   that's right -- most of them..  That does not mean those investors are bad as much as it means our education system(and most in government positions) are full of innuendo demonizing nonsense.  

That writer needs a new topic.

 

 

BA Deere
Honored Advisor

Re: Land Ownership

Isn`t land basically a Non-Fungible Token?  It just and only goes up, Iowa land was up 29% last year, so a $10,000/acre farm on Jan 1, 2021 is worth $13,000 on Jan 1, 2022.  Just having it in your name for one year you made $3,000/acre, the profit from raising 220 bushel corn and selling it for $6 is just the annual "dividends".  It`ll probably go up another 15% this year. 

https://www.investopedia.com/non-fungible-tokens-nft-5115211  

There is just so much damned money out looking to buy any sort of dip, that I can`t wrap my head around any plausible scenario where it ever goes down again, not in my lifetime.   Because, it`s established that cashflow doesn`t matter, you buy it "when it`s for sale" stick $1500/in pattern tile and watch your networth go up every year on paper.   I don`t know how "they" are doin` it.

 

BADeere_1-1641817864697.jpeg

 

sw363535
Honored Advisor

Re: Land Ownership

Never say never....... Lets look at one of the more interesting times in history when land was in high demand.... 1900 to 1925

in the sw land could be homesteaded for the price of two years of life(for comparison- a steep price for folks who wanted to invest in the USA..... The whole region was "bought" ,profits built a new house on every quarter, equipment, livestock, a well, trees, and motorized transportation for nearly all.  

Ten years later large parts of the land was abandoned.  And from 1935 to 1959 there were acres that were without cultivation or cattle.  Unrented and "notfarmed" acres set in every county. Some were absorbed by government to form a grassland preserve.    Ground water and natural gas pulled it all out of the dust.... and now cheap dollars are buying it for unheard of prices.  Times change.....   In Iowa urbanization is doing the same job and an economic wreck this time is an urban one...... there are large areas of Chicago that are worthless land.

0 Kudos