The Harlowton news. [volume] (Harlowton, Mont.) 1909-1914, 1911-03-17
Land Values
in Montana.
BY F. S. Cooley, superintend.
ent of Farmers Institutes.

= = y = 4" y + !. i y. i. I. I. 4. !. j
Probably in no part of the United
states have the prices of land ad
Vanced more rapidly during the pas
half decade than in certain parts OF
Montana. The doubling of the nrice
each year for three or four years is
not unheard of, and quadrupling in
| nVe years Is common thing. To
some OF the older residents of the
state, accustomed to regard land val.
ues as low, and sceptical about the
salety or land as an investment at
any price, this increase in prices looks
very questionable There ia com.
mon apprehension of a decline in
prices that will retard the states
progress and bring financial ruin TO
investors.
l am frequently asked If land prices
nave not gone too high; if the land
is really worth the sum asked: If
there will not be subsequent decline.
one section of land in Fergus county.
sold at SO per acre four years ago
ll9O6), upon which no improvements
nave been made, lately changed hands
at $42. Eastern Montana can produce
scores OF examples Of lands that have
advanced in price from SO or s4 to s25
to $40 per acre in five years. Is it
safe for the settler or the investor to
pay these latter prices?
Land values may be divided into ~ |
the intrinsic, based upon capacity to |
produce crops, and (2) place, depend- |
Ing on location. For example: A. |
Land that will grow steer worth |
$50, less $40 cost in four years on ten
acres, produces an annual income of
p1 per acre gross and has an intrinsic
value for that purpose of about $40
per acre. B. Land that grows two
.ons OF hay worth So per ton at a cost
u $6 per acre is paying 10 per cent
IN an investment of $1OO and is worth
approximately that sum. c.. Land
nat produces twenty-five bushels of
wheat worth 81 per bushel at a cost
II $lO per acre, earning SIS per acre
let, Is paying 10 per cent on $3.50.
}. Land that produces one ton of
obacco worth 5000 at a cost of SIS
er acre, leaving $125 net, is paying
o per cent on value of S1,25O per
ere. e. Land that produces annual.
$500 worth of lettuce and $500
'orth of celery per acre at a cost of
100 for manure and $500 for labor.
fter paying taxes and other charges
to 500 additional, would
ct pay 10 per cent on a valuation of
5000. The market prices of these
Inds may be more or less as follows: |
:, $40 per acre; B, $25; C, $50 to $40;
, 5000 to $500; and E, $1,000 to
1000, for price and value become ..
pproximately identical only under
'mplete utilization and perfect con.
tons. Place value, depending on To-
Ition, may be $1,000,OO0 per acre in
'rtain parts Of New York city, 81 900
n acre in Great Falls and nothing
unsettled territory away from the :
teries Of commerce. I
The law Of supply and demand af- Ii
cts place value and price far more c
an 1t does intrinsic value. For ex- II
nple, though land may be capable Il
producing just as much wheat in S
ontana, 1000 miles from Minneap. C
s and 100 miles from a railway, as C
e mile from Pillsbury's mills, in the t
ter case twenty-five bushels worth t;
), produced at cost of $40, leaves +.
), or 10 per cent on $3.50 value; in C
former case we must deduct 20 A
1ts per bushel for freight by rail. II
y and SO cents per bushel for haul A
to railroad, leaves 30 cents as the p
m value Of the crop. which means T
let deficit and no value of the land Il
wheat growing. m
Again. we might dnd $4,000 acres of
eat land close to the railroad. can fa
e OF growing twenty-five bushels of b,
eat per acre at cost of $40. with n,
2O-cent freight rate to a 81 per al
'hel market. Although such land tn
'duces s12 per acre net, or 10 per tu
1t on $120, If only small propor- &C
OF this area is producing a crop. it