Super helpful. New widow. Working on tightening up family living to keep the dream alive. Would love to save on inputs but don’t see what I can cut. Need to hire another guy. So my inputs are going up
Just a comment about valuing farmland from a farmer's perspective:- Speaking generally, as there are aberrations or bubbles; farmland valuation are an amalgamation of several distinct asset values we'd call "farmland value". As an example, the value of the bare land, plus the value of improvements, plus the value of the irrigation entitlement. All things being equal, the value of the land increases with CPI; usually with an additional couple percent. When this reverses, it's temporary, explainable, emotional, and the best time to buy. Drought depressing the mind of the effected community is the example. The value of the improvements (sheds, fencing, irrigation system, tree plantation type) always devalues relative to the particular improvement type. The irrigation value increases at the highest rate and is only in the water itself, not the infrastructure; quality, security, reliability, accessibility. That 'cheap' $6k almond land is $6k for a reason, and it's still for sale for a reason. If it was good value it would have been sold before it hit the market. Quality assets are extremely liquid. As a rule of thumb, in the long run, quality farmland is cheap and poor quality farmland is expensive. What are your thoughts from an economical educated perspective Damian?
If you don’t mind, I’d like to chime in. Out West, where things aren’t as good, agriculture is true, raw, unadulterated capitalism. Farming without training wheels. Constant innovation, or die. There are no 5th gen + almond farms. They all did something else before jumping on the bandwagon, and something else before that, and they will be doing something else in the future. That is not the case for most of agriculture. We’re stuck in a rut (some of us, not me), and we’re all standing around waiting for the government to do something. I don’t have all the answers, but I have a plan for myself, and I raise my kids to be the same way. I lack empathy for those who are struggling, and wouldn’t bat an eye if the day ever came when I could go on a buying spree and buy land at fire sale prices. When the day comes, I want to see the land end up in the hands of small, innovative, entrepreneurs.
Super helpful. New widow. Working on tightening up family living to keep the dream alive. Would love to save on inputs but don’t see what I can cut. Need to hire another guy. So my inputs are going up
Just a comment about valuing farmland from a farmer's perspective:-
Speaking generally, as there are aberrations or bubbles; farmland valuation are an amalgamation of several distinct asset values we'd call "farmland value".
As an example, the value of the bare land, plus the value of improvements, plus the value of the irrigation entitlement.
All things being equal, the value of the land increases with CPI; usually with an additional couple percent. When this reverses, it's temporary, explainable, emotional, and the best time to buy. Drought depressing the mind of the effected community is the example.
The value of the improvements (sheds, fencing, irrigation system, tree plantation type) always devalues relative to the particular improvement type.
The irrigation value increases at the highest rate and is only in the water itself, not the infrastructure; quality, security, reliability, accessibility.
That 'cheap' $6k almond land is $6k for a reason, and it's still for sale for a reason. If it was good value it would have been sold before it hit the market.
Quality assets are extremely liquid.
As a rule of thumb, in the long run, quality farmland is cheap and poor quality farmland is expensive.
What are your thoughts from an economical educated perspective Damian?
If you don’t mind, I’d like to chime in. Out West, where things aren’t as good, agriculture is true, raw, unadulterated capitalism. Farming without training wheels. Constant innovation, or die. There are no 5th gen + almond farms. They all did something else before jumping on the bandwagon, and something else before that, and they will be doing something else in the future.
That is not the case for most of agriculture. We’re stuck in a rut (some of us, not me), and we’re all standing around waiting for the government to do something. I don’t have all the answers, but I have a plan for myself, and I raise my kids to be the same way. I lack empathy for those who are struggling, and wouldn’t bat an eye if the day ever came when I could go on a buying spree and buy land at fire sale prices. When the day comes, I want to see the land end up in the hands of small, innovative, entrepreneurs.
There is certainly more of a welfare mentality among farmers (the non innovative ones) than anyone in Ag wants to admit.
@ the solution is what causes the problem. We lost far more revenue than we received in subsidies, because of over production.