Farmlands Prices Keep Increasing
It seems that the U.S. farmers are now getting the appropriate value for their land. Although, the housing real estate sector is suffering crisis, the situation seems to be opposite with the farmers as the value of their farmlands in continuously increasing. According to a report from the U.S. Agriculture Department, the increase in the farmland value has been 200 percent from 1987 to 2006. The farms that were priced at $599 per acre during 1987 are currently being sold at $1900 per acre.
According to Loyd Brown, president of Hertz Farm Management, the situation seems to be healthily encouraging with respect to the farm economy. Decrease in the interest rates, increased attention from investors and increased demand of condos and office buildings are being cited as the prime reasons for this increase in prices of farmlands.
Farmers in the Rhodes Island have the costliest land in the country. According to USDA, any farmland that has an annual agricultural income of more than $1,000 can be termed as expensive. Prices of farmlands in Rhodes Island are currently averaging $12,500 per acre. Due to unavailability of land in the urban areas and presence of urban areas in high concentration, developers in the state are being forced to pay high amounts for suburban farmlands.
Another phenomenon that has influenced an upsurge in farmland values is the post 9/11 phenomenon. Due to this phenomenon, several urban professional are adopting simpler lifestyle and moving towards rural areas. For this purpose, they have started buying farmlands with the purpose of either breeding animals, growing organic vegetables or making honey, apart from maintaining their current jobs and businesses from home itself.
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