mathrulz
Active VIP Member
So what is the thought process when people buy land at ridiculous prices? How do people pencil it out with todays grain prices and high input costs? Are people paying cash money thats sitting in there bank account or using other land to cost average the purchase. 50 bushel wheat at $7 doesn't pay for $2000-$3000/ acre land down here anyway. Any personal experiences to share guys?
I've been looking at picking up some more land the last few years, but like you say it just doesn't add up at these prices. It's very tough to justify - especially if a guy stretches out canola to every 3 or 4 years to give the land a bit of a rest. The big guys may have the half million for a quarter of land in the bank - not sure - but that's about the only way it makes any sense at these prices.