The Price vs Value of Farm Land

Some know the price of everything and the value of nothing. The farmers buying land know the value of an adjacent farm, and as to price, may say "damn the torpedoes and full speed ahead."
Where else can they park their cash that will do any good.

My unscientific research to date shows that some banks are lending only $4000 per acre on land around Adams County that may be selling for more than twice that much, so this is not a credit bubble. I have posted the Article below on Facebook using the Wall Street Journal's own link and have cut and pasted it here.

"A Bubble Down on the Farm? online.wsj.com
The big question mark hanging over the farm economy is whether a bubble is building in Midwest cropland. Prices have doubled over the past five years in states such as Nebraska and Indiana."...WSJ (I accessed the entire article via Google News. This link asked me to subscribe to WSJ.)

Unlike gold, land offers a return. I don't yet know if the ethanol market for corn out-weighs the increase in world population, or if one would substitute for the other should one collapse, but I don't see either going away any time soon. If weather patterns remain eratic, so will world food production, so edible crop prices should/could remain strong. If land for sale remains at the 1-2% of the total as suggested in the article, scarcity could hold up land prices as long as the neighbors have cash that needs a safe haven and no better alternatives are available. On the other hand, land futures are not traded on the stock market, so in the big city who really cares? There it is the commodity prices that matter.

The farm land market may be driven only by people who know the VALUE of something and don't care about price. That is the opposite of the Las Vegas bubble. Perhaps those who don't know the value of things should be afraid ... very afraid. It is almost 2012.

Seriously, I do wonder if the so-called "business cycles" that we came to know and love in the 20th century might be twisting like a strand of DNA.

I don't claim to know what will happen, but when the issue is mentioned on Google News, people are beginning to pay attention. Stay tuned.

Hedge Post Foundation

I am a new member of the Western Illinois Sustainable Agriculture Society and I recommend the purposes of the group, and others like it, to everyone who eats. If you have been wanting to grow food, but need land, call me. If you have an odd 5 acres that someone could grow something tasty on, call me. I would be happy to help you find the missing party. My purpose is just to help us grow a wider diversity of food and bring unused land back into production. I'm thinking lease or crop-share, etc. I am also interested in green construction and implementing renewable energy. For instance, the pond in the photo is fed by a spring and it serves as farm irrigation in dry weather. It could raise fish, cool a house, and create electricity all at the same time. When I get something more happening with it, I will post the photo's here. I plan to undertake these activities under a organization that may be called the Hedge Post Foundation, LLC. Eat well and prosper. GH

Photo of New Listing & our New Blog Address

Our Blog Address has changed to 217House.blogspot.com. "217" being the area code for Illinois.




The newest Rodemich and Sons listing at 3125 Rutledge Place, Quincy, Illinois, is listed $92,500. It is 1080 sq ft, was built in 1950, and is in a convenient location, great neighborhood near excellent schools.

In fact, in Quincy, most neighborhoods are pretty nice.
Best wishes,
Grant