USA Land Prices.
https://www.agprofessional.com/article/us-farm-real-estate-60-acre
The average farm real estate values for the U.S. is $3,160 per acre in 2019. That’s up $60 from 2018, according to USDA’s 2019 Land Values Summary. ( AgWeb )
The average farm real estate values for the U.S. is $3,160 per acre in 2019. That’s up $60 from 2018, according to USDA’s 2019 Land Values Summary.
England land prices.
The average price of bare agricultural land in England and Wales has dipped slightly, down by 0.8% in the third quarter of 2019 to £6,975 per acre, the latest index report shows.
This takes the total decline over the 12 month period to 1% and marks years of decline with average prices now down 9% over five years, but still 40% higher than a decade ago.
The Knight Frank farmland index report says that given the current two big issues facing the agricultural sector, falling commodity prices and continued Brexit uncertainty, an annual fall of just 1% is a remarkably resilient performance.
It suggests that robust demand and limited supply help to explain why the market remains relatively steady. In terms of supply, fewer than 100,000 acres had been advertised for sale at the time of writing in Farmers Weekly, a year on year decline of 44%. Few vendors seem willing to test the market, despite values holding up.
Looking at demand, rollover relief continues to be the motivational driver for many purchasers. The recent sale of a large farming portfolio with multiple shareholders has only added to the pool of potential buyers in the East Anglian region.
Committed farming businesses are also looking beyond Brexit and are keen to secure more land if it becomes available, according to Andrew Shirley, head of rural research at Knight Frank. ‘A farmer recently told me he paid over £10,000 per acre to secure vacant possession over a block of land his family had been renting under a traditional tenancy,’ he said.
He pointed out, however, are extremely variable, ranging from over £10,000 per acre on a number of deals Knight Frank has been involved with to around £6,000per acre for land in places like Lincolnshire where there are fewer rollover led buyers.
‘I expect the market to remain flat for the rest of the year while farmers digest the implications of any Brexit developments,’ he added.
Land Value Taxation.
In Kenya, land prices are high because the land laws do not discourage holding of idle land hence low supply which equals to high demand which causes high prices.
In England, USA and other 1st world countries, their land laws are designed to discourage holding land idle through use of land value taxation. Every land is levied a tax per acre. Only multi billionaires can afford to keep paying the high land tax on idle land in those countries. Most people find its makes more economical sense to sell off idle land instead of holding it.
Henry George explained the concept of land value taxation in the 1890s in USA when the Catholic Church and the English Monarchy owned most land in Manhattan. He wrote to the Pope then and the discussion that ensured thereafter gave birth to the concept of land value taxation . Land value taxation is usually a win-win in that the land owners who would like to keep paying the high tax for idle land are allowed to keep it idle and their tax goes to improve the economy and infrastructure. Land owners who would like to keep their land are then forced to make their lands productive through constructing buildings for rent, sale or farming. Th profits made from this enterprise is then used to pay off the land tax hence a win win.
Architct Francis Gichuhi Kamau.
0721410684
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