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Cattle Boards
Grasses, Pastures & Hay
Pasture Pricing ?
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<blockquote data-quote="Stocker Steve" data-source="post: 1328958" data-attributes="member: 1715"><p>I was at a local watering hole last week when I was asked if I was interested in buying another pasture. I said sure. :cboy: </p><p></p><p>I ran some rough numbers the next day and once again was puzzled by the limited effect of production on land pricing :</p><p>- One county (we live a mile from the county line) raised accessed land values one percent this year, the other dropped them 6%.</p><p>- Better land sells for about 33% more than poorer land, but the stocking rate is about 250% more.</p><p>- So, if you want to graze cattle you are better off buying the best land (which was probably row cropped in the past) and putting it into grass.</p><p></p><p>It seems like I am in the minority camp on this train of thought. Is land ever valued by its pasture production potential?</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1328958, member: 1715"] I was at a local watering hole last week when I was asked if I was interested in buying another pasture. I said sure. :cboy: I ran some rough numbers the next day and once again was puzzled by the limited effect of production on land pricing : - One county (we live a mile from the county line) raised accessed land values one percent this year, the other dropped them 6%. - Better land sells for about 33% more than poorer land, but the stocking rate is about 250% more. - So, if you want to graze cattle you are better off buying the best land (which was probably row cropped in the past) and putting it into grass. It seems like I am in the minority camp on this train of thought. Is land ever valued by its pasture production potential? [/QUOTE]
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