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December
28, 2011
Dear Subscriber:
Wow what
a year 2011 has been! A three decade old record, year–over-year
percent gain and no that is not a misprint, was broken (See
November 2011 AgLetter later in section 1) according to the
farmland value survey conducted by the Federal Reserve Bank
of Chicago. Are current farmland prices in a bubble as so
many are predicting? Or are these price levels here to stay
with further increases on the horizon? Obviously nobody knows
for certain, but a few interesting quotes I recently read
that I found interesting and I hope you do as well.
“Over
the years you will find that the best time to buy land was
yesterday” by Jerry Gulke quoting a senior farmer’s advice
to him in a 11.2.2011 article Should You Buy Land? On AGWEB.
“I can’t
tell you whether the price of farmland will go up next year.
I think we all realize that no asset can continue to rise
18-20% indefinitely. But that has little or nothing to do
with its value at current prices. And from a value standpoint,
there’s no doubt that today’s prices are well justified.”
Murray Wise in a 12.13.2011 press release by Murray Wise
Associates, LLC.
“The coffee
shop talk a decade or two ago was that a 500 acre farmer
couldn’t make it in the world of “big” producers. A part-time
farmer who worked in a factory and bought land 20 years ago
is likely netting more pre-tax than the CEO of the company
he worked for. So size doesn’t matter if you are in it for
the long haul!” by Jerry Gulke in a 11.2.2011 article Should
You Buy Land? On AGWEB.
In my
opinion the bottom-line is though today’s prices seem high,
10 and 20 years from now, a farmland investment even at today’s
prices will have been a good long term growth investment..
IFINALLY and MOST IMPORTANTLY in these exciting and interesting times as 2011 draws to a close I just want to THANK each one of our
SUBSCRIBERS and SUPPLIERS for their patronage this past year as I have enjoyed serving you. May
God bless you in 2012 by bringing you peace,
joy and prosperity!
Click
here to read our complete news letter.
Evan Lemenager,
AFM Principal,
Illinois Land Sales Bulletin
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