LOL, The most recent poll out in the "Investment Advisor Mag", (copy of the poll was sent to me, never read the mag, but it was an entertaining article) state tha 46% of the BROKERS have no plans to 'change' their clients investment strategies. LOL,
Farm land? Unless you have a "developer " come into Build, the land is worth, what? Farming crops? Wheat? Corn for gas? Hell you better off creating a DPP for Cattle feeding or Cattle Breeding. Feeding is short term (180 days) and you get money selling cattle to slaughter. Tax write offs are positive in the deductions for currenty year. Cattle Breeding/Hog breeding will take you 24 months to have any capital gains. However the depreciation on the Hogs/Cattle work out quite nice for passive losses. Fuck people, there are so many ways to make money other than GOOG, it's pathetic. I doubt wheat is worth farming after all the "Organization cost and cost to carry the land for the row crops to harvest. Then selling them on secondary market? Storage, etc.... Writes offs are pathetic and even if you started a syndication, no passive write offs in ROW CROPS until you harvest. Fuck that
By the way, "when one says land is worth X" that means that you hope its worth X because current economic conditions say its worth -X. And a buyer may offer you -X(2) Of course you could run to your local bank and see if you can "refinance". However, I doubt the bank will agree that your farm land is worth X. They will say its worth -Y and send you on your way. Besides, Farm land and Raw land in general are as illiquid as they come. Of course, it is a safe investment with a return someday.......
I know someone who bought 300 acres of farm land in the 50's for 15k. That land today would bring 50 times the original purchase price. 3 years ago, they leased the mineral rights out to a gas company for 90k a year. 6 months ago they drilled a gas well on it, for the first 6 months it brought in 30k a month, as of right now the current owner is pocketing 20-25k a month from the well on top of it being leased to farm on. They have decided to drill 2 more wells on it. Not to bad for a 15k investment.
Farmland is selling for around 3k an acre in Michigan. I'm talking fertile farmland. Highly suitable for corn, soybeans, etc. The rush to accumulate farmland, cash crops, and all things derived therefrom is cyclical, and even faddish this time around. It will all come crashing down, like every time before in history.
People understand the ag business like they understand trading, it's a hoot. Investing in farm land doesn't mean YOU farm it. Others do the work and you reap the benefits, plus you keep the land. Grain prices are at all time highs as well and they aren't going down for a while.
Please give the where I can buy it . . . Please . . . Please Please. Food is faddish, right. I agree everything is cyclical, so study the grain cycles and get back with me.