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A friendly place for chat, rumors, gossip and jokes.
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- Location: Central Minnesota
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Nesikep wrote:Why is land unaffordable?
Becasue usually the price is not based on the current earnings it can generate. In a few rare cases here you can upgrade or convert land so it will cash flow. I did it once in a row, currently struggling to repeat.
Better row crop land (I don't own any) is priced for a couple percent of operating return, and some appreciation, for a historical total return of 7 to 10%. All government subsides are factored in to the operating return.
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greybeard wrote:'yet the price of the goods sold has stayed stagnant for decades' which somehow, is very different than "the price of goods bought'. /\ /\ /\ /\ /\
Isn't it funny that in 2012 when the price of commodities hit there peak that the price of food doubled. Now after 6 years of falling prices, the price of food still hasn't dropped back down to pre2012 prices, even though commodities have?
Long time no see
Yeah, same can be said of fuel prices... When we had the last price peak the barrel was worth $140 and we had $1.50/l fuel, then it went down to $40/barrel and pump price went down to $1.00/L.. Now it's up a little again, but our pump price is already back to $1.50 again.. god help us when it hits $140 a barrel again!
What can be asserted without evidence can be dismissed without evidence