I'm sitting on the front stoop listening to the neighbour across the side-road bale up about five acres worth of large round hay bales. I'd be surprised if there's more than a dozen bales coming off there. That will have a max value, depending on market conditions, of around $1,200.
The place across the side-road changed hands a couple years ago. It's a hundred acre spread and the house is a sister-house to Falling Downs, most likely put up by the same crew. The new owners are not "farmers" per se. But they do invest in the local economy.
That $1,200 worth of round bales pooped out of a $40,000 baler towed behind a $150,000 tractor. That'll feed the dozen cow-calf pairs they keep on the place over the winter.
From a farming point of view, none of this makes sense.
The numbers don't work.
But from a hedge-against-inflation perspective, the numbers work just fine. The play-farmers bought the place three years ago for half a mil.
They could probably turn it over for a million and a half today.
I hear Bill Gates is buying farmland.
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