Inflation and Crop Profitability: How Much Can Farmers Pay for Land?

Abstract

The purchase of a parcel of farm land can be one of the most difficult investment decisions confronting farm operators. Compared to other production inputs, land is purchased infrequently and usually involves a large, long term financial obligation. The land investment decision is especially critical today, when many are questioning the ability of farm income to support current land values at "normal" commodity prices.

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