The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1856-05-20
GOOD LAND--AND IT'S VALUE


There is perhaps nothing in which far
mers show their discernment more than i
properly estimating the value of land. w
will here call attention to a few genera
principles which may be useful in coming t
correct conclusions on this subject.
We will take it for granted that lant
which produces only enough to pay the cos
of cultivation is worth nothing-merely
worth having and nothing mOre-like la
borer that is hired for his board and cloth
ing. Land then has n money value when
it will, under proper care, produce q croI
worth more than the cost of cultivation
Thus, for example, if it cost as much as the
price of eight bushels of wheat to grow a
crop of wheat on one acre, then land which
will yield only eight bushels to the acre has
no value. But if land which yields eight
bushels to the acre is just worth cultivating,
and no more, how much is land worth that
yields nine bushels to the acre! Perhaps
some one may answer, that it is worth as
much as a bushel of wheat, and that when
wheat sells for one dollar a bushel, an acre
which will produce one bushel of wheat
more than the cost of cultivation, is worth
one dollar. y little reflection will, however,
show that such valuation would be en-
tirely wrong. The money paid for land,
like any other investment, should be re-
quired only to return fair interest on its
cost. Therefore if one bushel of wheat is
worth ono dollar this j. fL. rot,,,,, So i L
an acre of land for one year, the value of this
acre is the sum which would draw one dol
lar ofintercst. Surprising that ten per cent.
Is considered to be an adequate return for
landed property, then an acre which Yields
ono dollars worth of produce above the cost
OF hllage Is worth ten dollars. If six per
cent. is considered to be n fair return, then
1t is worth sixteen dollars and sixtv-six
cehtS. AT first sight it may appear unreal
sOnabls TO maintain that land capabIe of
producing eight bushels to the acre is worth
nothing. whilst that which will produce nine
may be Worth from ten to sixteen dollars
per acre. But every prudent man knows
that 1t is the same thing as giving money
away to pay for that which will bring moth
ing in return. If he pays out money he
VIII expect to receive something for in
terest on the amount expended.
Reasoning in the same manner as above. |
1t viii be easily seen that land which will |
produce eight or ten bushels to the acre
above the cost of cultivation will ba u,ortI, |
from one hundred to one hundred and fifty
dollars per acre. Of course, a great deal |
Will depend upon the rate of interest. and |
therefore upon the abundance or scarcity
of capital.
We have used the expression "cost of
cuitl'auon'" and we mean thereby the
whole cost of labor and seed, including the
expense of keeping up fences and taxes, and
also another item which is frequently omit
ted, namely the wear of the land, or rather
the amount which, spent in manuring, will
make the land as good as it was before the
crop was grown. For it is to be taken for
granted that no wise farmer will let his
land become poorer from cultivation. And
therefore larger price should be paid for
land that will "wear we'll" than for that
which requires a great deal of manuring to
keep it up.
The principles which we have endeavored
to explain is perfectly accurate, and still
there is danger of its being misunderstood
in practice. We will therefore state it again
in somewhat different manner. To find
the value of land We must know the worth
OF the crop which it is capable of producing
one year with another; and we must know
also the cost of producing a cron. If
the cost OF producing is less than the value f
Of the crop, then the land is worth price 9
1t is worth the same which, invested at in :
'erest, would bring as large a net income I
IS that yielded by the land, after paving
Ill expenses
From what we have stated above it will
De seen that there may be difference of
'nly few bushels in the yield of two prices
u land and Yet the one may be not worth
having whilst the other is worth twenty.
lfty, or even 4 hundred dollars Der acre c
ana since II does not cost much more to :
cultivate the same piece of land, whether it ;
q rich or poor, it follows that wherever
manure can be had for reasonable price.
will prove the cheaper plan for the farmer
make his land rich. For the same reason u
will generally be found to be more profit
bic investment for him who has spare hi
aprtal, to spend it in improving the land he .
as, rather than buy more. But still there al
land which it would be unwise To snen6 al
IN L.