Either we have bought land of our own or know someone who has; we all know how the prices of land have been continually increasing over the past decade. Many experts say that the price of land is going to start leveling off from the increase in values. Farms incomes is the most important element to the fluctuating farm land values and what happens to those will have a direct affect. With the incomes being so unpredictable lately, we have had to look at previous land booms to try and forecast what could unfold. From 1990 to 1920 the rising corn prices sent some land up almost 500%. The State Historical Society described this first boom period: “For agriculture this was prosperity piled on top of prosperity.” The second land value boom was from 1973 to 1981 increasing some land by 345% causing the price to jump from $482 to $2147 an acre. This was fueled by the rapid increase in commodity prices caused by the opening of major export markets. There are three factors that are happening now that has similarities of the past booms. One is the fact that the booms are driven by increasing prices and returns. Also, the idea that land’s value little to no downsides. Additionally, the way the general economy and society as a whole with the Great Depression and the financial hit that caused the farm crisis. Ultimately, the relationship between the past farmland boom periods and today are features that help us to look into the future of the land prices. Farm income is still the deciding factor on if the land market will rise or fall.
Living the Life In Ag 