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(laughter) yes gotta own that highly liquid farmland
farmland isn’t all that illiquid. watch some auctions for hte stuff and tell mei f it ever doesn’t sell, or if it ever even wells “way under the market”.
now, hold some random auctions for apartment buildings or office buildings and see if you can get the same result.
its probably the most liquid real estate investment extant.
Whattaya know… he does have some real world market knowledge! 😉
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that meant for me? with absolutely no disrespect intended, and ironically, i have harped my whoel life on the same points that i think drive your policito-economic views…
its not a personal argument, jake, its just economic reality. 🙂
farmland is my biggest investment position by a fairly wide margin. I grew up on one. Its liquid enough right now to be anything but cheap, auction some land in bum frick wisconsin and watch bids show up from people who couldn’t even point to it on a map, but want to own it. A good ole boy can get it cheaper, because the sellers are interesting that way.
its not personal, chief, but if paul ryan and people that would celebrate his plan published some months ago got their way…
the result would be depression. is that a liberal comment? no. i’m the one guy on this board less liberal than you, jakie, but i’m not so bullheaded as to not accept reality. and reality is that this economic quagmire will end when enormous deficits are run in the US (and possibly europe) and europe does something to end the panic, which could be every bit as simple as the ECB announcing interest rates for the troubled countries and lending at those rates if the market wont.
and, anytime its convenient, please explain how, if we were on a gold standard, finding an enormous reserve of gold somewhere in kansas wouldn’t have disastrous “money printing” effects if congress running an enormous deficit to end the debt deflation cycle would?
its not politics, its not opinions, its just how its going to end, eventually, although I suspect probably only after a whole lot of misery. 🙂
bein an owner of farmground. no one but a slicker calls it “land”.it is like all real estate. location location location.
depends on your purpose. if productive use is your intent then it becomes somewhat like buying a private company or analyzing a stock, productive potential vs price. sometimes, the better land isn’t actually more expensive, and if your intent is productive purposes “bad” location can be better, represent better value.
agreed. but farms are no panacea. the access too water is much more important than the grade of the dirt. also is there a cooler or mill near by. its just like all commercial real estate no clientele no good.
“access to water” isn’t a pressing concern on any piece of land i’ve ever looked at. “pray for accomodating weather” is a bigger concern. I’d guess a very small percentage of land in my part of the country is dependent on irrigation of some kind, nearly all of it simply prays for rain.
thats not farmground then. thats just dirt. dry farming died fifty years ago. no water no way.
farming is just like trading on margin. you got one shot if your a newbie too the game then your finished if you fail. seen too many think starting a fucking apple orchard gonna pay for retirement.a little stand by the road. the easy life. not gonna happen.
farming and farmland is a … man, what is the word? solid? not quite, but it’ll have to do… business with enormous outside unpredictable influences. weather, markets, weather on the other side of the world…
also, farmland right here, right now, isn’t exactly cheap. the dmeand is sufficiently great that in all honesty, there are probably a bajillion malls somewhere in the midwest selling at a better short or intermediate term ROI.
but it will always be worth something, and it has the capacity of generating a better return than treasuries (1.7x%) or gold/silver (zip). if we have hyperinflation (which we will not), it will prove a better buy than pm’s. if we have a deflationary depression, it will hold up better.
and it is a uniquely flexible investment, in that you can rent it out readily (find me a piece of fertile dirt that won’t rent….) OR hire it farmed, OR farm it, OR it provides an avenue to certain kinds of entrepreneurial ventures. I actually think that int he world of business, and new products, and such, a piece of dirt is a pretty promising asset. What percentage of you spend 4x more on an exotic loaf of bread than your parents spent when you were growing up on the same old generic bread? WFMI?
i think its the only currently viable “store of value” investment. right here, right now, people are paying too much for PM’s for htem to realistically qualify as a “store of value” investment, they are a momentum buy or a “greater fool” buy. Gold may well go far higher, I have no interest in betting against it. But at the end of the day, dirt has the possibility of generating income (its so emminently rentable), providing the basis for some business ideas I have interest in, and it will always be worht something. That noted, its not cheap.
think of it this way: its not subject to high frequency trading, it has a certain amount of “sex appeal”,s or tof, in that its comforting to think “I own a bunch of farmland”, it can generate income in various ways, and if you own enough dirt to retire today its essentially certain you can stay retired in 20 years.
throw in the emerging markets secular trend that should last about 50 years and you’ve got at worst a fair and reasonable investment.
all good points. just sayin the farm however you want too say it thesis is like all others. just another way too try too make money. you could attempt growing avocados in alaska too.