07-08-2022, 08:30 PM
(07-08-2022, 05:09 PM)MalevolentTwitch Wrote:(07-07-2022, 08:11 PM)ABNARTY Wrote:
It doesn't surprise me wealthy entities are purchasing it. They can afford it and most likely are hedging for something down the road. It is just another place to store wealth right now.
I agree to an extent. Land investment has always been solid bet in the past. In contrast to the stock market, land is a finite resource. As such, it typically maintains decent value even accounting for runaway inflation.
That being said, I think there's more to it than hedging against a market failure or expanding a portfolio. If we expand on the concept that the current economic system is failing and has been for some time, and it stands to reason that those that "have" are loathe to just give it away... Then it is not outside a logical conclusion that the "Ominous They" will do anything to maintain the current balance of economic power.
To that end, it's becoming commonplace in my area that when farmland gets put on the market, the land itself is already being worked by farmers that don't actually own the property. They are just leasing it from the current owners... Almost like a form of modern day feudalism.
I personally believe that these land grabs coinciding with the recent trend of storage and production facility fires, fertilizer shortages, shipping issues, etc... is far too "coincidental" to ignore. If those that have control of not only the land but also the supply and can charge farmers that work the land... How can they lose?
Just a theory though.
Great points.
How about the land not only being a great place to store wealth in uncertain times, it also provides said owner with control of resources? A win-win.
Control the resources, you control the power structure moving forward.
I have witnessed a lot of consolidation in just my lifetime too. A small farmer (especially dairy where I live) is a thing of the past. They cannot make it. Cash crops and supporting larger farms is where they make it for now anyway. It's almost become a skillset you can charge a labor rate for. But own the company? Nope.