Farmland – A Quick Comment

Monday, July 13th, 2009

Hi there!

I just read this little bit on a blog – I’ll tell you where in just a minute, but please read this first:

“According to one source, [farm]land values have gone down 20% already in other countries, which would suggest the U.S. is lagging in a farmland price correction. Prices are down 18% in Brazil, 12% on the Canadian prairies, 20-35% in Russia and Bulgaria, and 70% in the Ukraine.”

This is a contrarian approach to the populist theory that farmland is a safe investment. The rationale? Farmland prices are being held up primarily by speculation, and as the speculator goes, so go the prices. Also, the theory that farmland will increase in value as the world population increases MAY be an ultra-long-term truth, but speculation in commodities can also kill that on the short- to long-term.

For me, the only reason to buy farmland is as an investment that you are going to work as a farm! And that comes with it’s own large family of speculation attached. Not a sure thing!

Oh – the quote comes from a blog called “Seeking Alpha” and you can find it at http://seekingalpha.com/article/148224-13-agriculture-myths-busted-this-bubble-is-ready-to-pop. It makes a fun read as long as you’re not heavily invested in farmland. :-D

Ciao for now

Craig
for
Bulgaria Realtor

Jimmy Craig Websites

P.S. Remember, you read it FIRST on
Bulgaria Realtor!

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