http://www.cnbc.com/2015/08/06/farmland-sees-slowest-appreciation-since-2010-usda.html I am very curious as to why Cropland has such a big premium over pastureland. Difference in water source? Is it both productivity and a Chinese premium?
It has to do with govt. farm subsidies. Pasture isn't counted as farm so doesn't qualify for govt. $$. There may be other criteria, it's been awhile. You'd be surprised how many congressmen and senators are in on the govt farm subsidy game.
Really? My 2 friends from Ok and AR told me the yield is about: min $30 per bail, 30 bails per acre, 4 cuttings per year. That's about $3,600 a year. Of course, that sounds like an astounding yield if pasture land is just averaging $1,330 per acre. Unrealistic? Is pastureland specifically grazing land or hay growing?
"surprised" why? until fairly recently the US Congress was exempt from insider trading rules etc. etc.
I think that most of the pasture land is much lower quality land. You get poor yield if you grow corn/soy on pasturland. Sometimes its because of lack of water and sometimes because land dry faster. For instance, in australia all the desert north part of the country is pasture land because you cant grow anything on it.
Looking at buying some crop land in Canada. Anyone have some good resources, like how to value comps, etc?? Seems like price per acre is all over the board....can't quite get a handle on it.