> Farming is a terrible business. My few hundred acres (maybe worth $5M) will only churn out a few hundred grand in profit

Well, it is ultimately a real estate business. The "hundred grand" in profit is really there only to support the mortgage payments — meaning that's what other farmers are counting on, so they're going to drive the prices down to that point. It is like a tech startup. You are counting on the assets increasing in value when you exit. That is where the profit will eventually come from, hopefully. It is not a business for everyone, but I like it.

> Many of the buyers keep growing their farms because it's a status symbol.

And because the fun parts of the job end too quickly when you don't have enough acres. I'd at least like to double my acreage. That is where I think I'd no longer be in a position of "That's it? I want to keep going!" and instead "That was fun, but I think I've had enough."

That said, the machines keeps getting bigger, whether the farmer likes it or not, so perhaps in that future I'll need even more land to satisfy the pangs.

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dylan604 4 days ago | parent | next [-]

If you don't need a couple of million dollars worth of tractors, combines, and other equipment that are all driven by GPS then you don't have enough acres.

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sandworm101 4 days ago | parent [-]

Lol, a couple million. A single combine can easily be 1mil. And when you need them, you need more than one.

	▲	dylan604 3 days ago \| parent [-]
		right, so a couple million. you must be one of those poors that think a couple means exactly two. when you're rich AF, you toss a couple million around to mean plebe monies. too bad farmers aren't rich AF. when you have to use the farm as collateral for the tractors, you gotta ask if we're doing something wrong

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HDThoreaun 3 days ago | parent | prev | next [-]

What is the thesis for speculating on farm land? Theres no reason for me to think it will appreciate any faster than inflation because demand is stagnant.

	▲	cameron_b 3 days ago \| parent \| next [-]
		"Agriculture use" is the zoning class of choice for developers to hold land out of town until the town gets there. They have to show some actual agricultural use, so they lease it to farmers or cut the pine trees, and in return they get the lowest tax value for holding the land. Then when they want to cash it in, they rezone it to commercial or residential and build on it.
	▲	9rx 3 days ago \| parent \| prev \| next [-]
		> Theres no reason for me to think it will appreciate any faster than inflation because demand is stagnant. It has in the past. I looked at a $1M (~$1.5M in today's dollars) farm 20 years ago. Couldn't figure out how to make it work at the time, sadly. Frankly, it seemed like complete insanity when I got into the numbers. But, today it would sell for ~$6-8M. About the same gains as the stock market over the same period, granted, but it's way easier to convince someone to loan you money for land than it is to buy stocks. There may be no reason to think that will continue to happen into the future, but many are willing to place that bet.
	▲	tim333 3 days ago \| parent \| prev [-]
		Get a mortgage on the land. Farm pays the interest. The price of the land goes up with inflation, the size of the loan doesn't. Difference is low tax profit.

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skybrian 4 days ago | parent | prev [-]

Just wondering: what are the fun parts?

	▲	9rx 4 days ago \| parent \| next [-]
		I enjoy most of it, but, being a tech nerd at heart, I'm in my glory when I'm out in the field playing with the tech. More acres means more time to play. Something I don't feel I get enough of. I get the "I want to keep going" feeling when I disappointingly have to put everything back in the shed. Like I mentioned before, I figure doubling my acres would be the threshold where it goes from "I want to keep going" to "I'm good".
	▲	WalterBright 4 days ago \| parent \| prev [-]
		I suppose it's like programming. I enjoy programming. Most people hate it. Many people simply enjoy growing things. I'm glad there are lots of types of people!