Monday, November 28, 2011 by: Ethan A. Huff, staff writer
(NaturalNews) There are arguably a number of varying factors influencing the
mass farmland sell-off currently taking place in the American Midwest. One thing
seems certain, though -- America's once-treasured farming tradition is quickly
fading into history as the next generation of Americans abandon rural life, and
investors come in to snap up their fertile plots of soil in Iowa and elsewhere.
The trend of migration from rural to urban life is nothing new. But what is
relatively new is the heightened interest among investors from around the
country, and even from around the world, in purchasing US farmland as a type of
"hedge" commodity for their portfolios -- and this is especially true as the
value of farmland continues its rise to record levels.
A recent Reuters report explains that in Iowa, an agricultural mecca marked
mostly by corn and soy crops these days, fertile farmland has become a hot
commodity that is attracting many out-of-towners. Unable or simply unwilling to
further the legacy of their parents and grandparents, farmland heirs are selling
or auctioning off their family land to the highest bidder.
At the same time, demand for farmland is so high that many landowners feel it
just makes good financial sense to sell their land. According to the latest
figures, farmland prices in Iowa have increased about 24 percent within the past
year, and the average per-acre price of cropland across the state is now $5,700
(http://www.iowafarmertoday.com/news...).
Another issue is the exorbitant federal estate tax, also known as the "death"
tax, that farm heirs are levied following a farmer's death. This tax, which can
exceed 50 percent of an estate's total value in some cases, can force farm heirs
to sell some or all of the land just to pay it, which inadvertently forces
farming families out of the business whether they want to or not.
And just who is buying all this land? Well, as we reported a few months ago,
wealthy investors like George Soros (http://www.naturalnews.com/033319_f...),
and China, which currently holds the most US debt currency in the form of
Federal Reserve Notes (http://www.crikey.com.au/2011/06/16...)
have been busy buying farmland around the world.
In other words, when the ever-worsening economic meltdown eventually leads to
massive food shortages, Americans will have already sold their source of food
down the river for a heap of worthless debt currency.
Sources for this article include:
http://www.reuters.com/article/2011...