Renting Land and Lease Rates

Appears bidders yesterday gambled on inflationary. Check out RB land auction.

We are in southern Minnesota. We are close enough to the big city that every time they push outwards we get displaced farmers with fistful’s of cash looking for new land to buy

Could very well be increasing inflation. It is a bet, plain and simple. Problem I see now, and as I understand our system better, is that government is going to keep taking more away. So even if the bet on inflationary for another decade does prove right then I suspect most of those gains will be taken by the government as time goes on. Our capital gains exemption is something that is set by government and can therefore be changed in short order. Also there is taxes. And of course we have the national debt and the economy due to "covid". Interestingly enough, increasing the capital gains exemption does aid in driving asset prices. Yes, it is valid and should be increased. But what the government giveth, the government can taketh away. The big picture is to consider that the idea of capital gains exemption even exists. Our system is built on fiat and debt/money printing and thus inflation. Too bad no one told me this 15 years ago, I would have done things differently. No expert on tv said anything about this in regards to protecting or growing my wealth. I was told of 1 to 2% inflation based on strength of an economy. That is 100% BS but that is what we were told all our lives.

I would feel much differently if land was something traded like a stock - buy in and sell in a couple years as market shifts. Or hold. Let the market decide. Under that scenario I would say buy, you can always get out with a small loss if the market turns. From a farmer standpoint it is a totally different situation. It is usually long term. And the investor type leads to large run up in prices but also a rapid collapse if a bunch of investor types are involved because in that case, they tend to all get out at the same time.

So I suppose I would need to consider if I am dealing with an investor type land owner or a farmer type. Because, for valid reasons, they may have two very different views.

He is about 4 hours north west of us

Saw an article the other day saying land in Iowa is up almost 20 percent over last year. The article was asking if this increase in price is sustainable. It seems we always say this every year but the demand for acres seems to win out over laying back and saying enough is enough. If we are just at the beginning of inflation who is to say we are at the limit it or soon?
I know in my neighbourhood land has gone up about 1500 an acre for river lots and you would be lucky to find one for sale to begin with.

Its interesting, my mother and father inlaw are selling there house in Winnipeg. There real estate agent said due to low supply people are bidding 80,000 over asking price on a half million dollar home.

Not sure how this will end! I know 2007-08 was the last real big step up in land values. Is this post covid , inflation era the next big leap in land values? Hard to digest anything higher eh?