Land
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Help, When Should I Sell My Land?!
A reader just sent us the following question: “If I had a parcel of farmland for sale, would I benefit by selling it this year 2010 or 2011? I was wondering how capital gains tax would affect what I would pay for both years?” With the passage of the Tax Relief Act of 2010 late […]
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Another Estate Tax Goodie in Proposed Tax Act!
One of the newly proposed estate tax rules in the proposed tax act is the allowance of estates to combine both spouses lifetime exemption to maximize the estate tax savings. Under current law, if the first spouse passes away and if their estate is less than the current lifetime exemption, the excess is lost forever. […]
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Farmland Turnover drops by 50%
One of the recent issues of Cornhusker Economics put out by the University of Nebraska Department of Agricultural Economics showed how the farmland turnover for the current year is about half of the long-term trend. The market for farmland has historically been a “thin” market in that very little is marketed and changes in ownership […]
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How Might a Rise In Interest Rates Affect Farmland Prices?
With a lot of recent discussion and articles on whether farmland prices are entering a “bubble” phase, I thought some analysis to see how a potential rise in interest rates might effect farmland prices would look like. Farmland prices (as are most financial assets) is normally a function of the income generated by the farmland […]
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Is an Unlimited Estate Tax Exemption for Farm Estates Harmful?
I came across an article put out by the Center on Budget and Policy Priorities from Washington DC. The gist of the article was that having an unlimed estate tax exemption for farm estates is unnecessary and likely harmful. The focus of the article is that this policy would create 3 harmful situations: First, according […]
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Better Investment – Farmland or Stocks?
As you can probably guess this headline that the answer is – “It Depends”. Iowa State University economist Mike Duffy ran some numbers comparing the return from owning farmland to owning stocks over certain time frames. Returns are comprised of two components: Yearly return – Cash dividends on stocks and cash rents (or the equivalent […]
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Is Farmland Too Good of an Investment
I have written many times about how farmland has been a good investment for at least the last 10 years or so. Most of this data has been gathered from sources directly related to farming, however, I have started to notice a trend about reporting on farmland as an good investment in mainstream sources such […]
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Food Demand Drives Farmland Prices
I try to skim a few of the major Mid-West farm cities and the Omaha World-Herald recently had an article on how food demand is driving farmland prices higher. There was a regional conference in Omaha sponsored by the Federal Reserve of Kansas City. The meeting brought forth various good nuggets of information about the […]
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Owning Farmland Has Provided a Good Return
One of our readers sent me an e-mail yesterday regarding an article posted by www.farmgate.com regarding the return on farmland investment from 1970 top 2009. This post was based upon the research done by Iowa State University. Over the years farmland investment have yielded a very competitive rate of return compared to other investments. However, […]
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Farmland Values up in First Quarter
The Federal Reserve Bank of Kansas City issued their quarterly report on agricultural credit conditions for the first quarter of 2010. They indicated farmland values rose due to strong demand and the rebound in livestock prices. Both farmer and non-farm demand appears to be very good. Looking ahead, they expect farmland values to hold steady. […]