The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-10-26
The PRICE OF
VALLEY Land
PRACTICAL DEMONSTRATION OF
REAL VALUE OF NORTH DA-
KoTA FARM LAND PROPERTY
VALUE DEPENDS ON PRoDuc-
TON CAPACITY.

Pembina Pioneer Express The
price of valley land or any other
thing depends on what revenue can be
derived from II.
A building on the front street in
the business part OF the town is far
more valuable than the same building
ould be If located on the back streets,
simply because the owner can get
more rent for 1t in the more advan-
tageous position.
An acre Of land anywhere is valued
almost entirely from its possibilities of
production. 1t should produce suf-
ficient above expenses to pay fair In
terest on it's cost and vice versa its
cost should be based on it's product.
or course there are other factors to
be considered in the value Of land.
such as water. timber, shelter, con-
venience to markets, neighbors, etc.
But these are minor matters and in
the Red river valley they may in gem
eral be considered as fairly equal all
over this section.
Therefore we may, as general
proposition, figure that the price per
acre of lands ought to be based almost
entirely on the profit
In figuring such profits, one must
take neither the big and exceptional
yields nor yet the failures that may
occur at times from extraordinary
causes. we do not think, however,
that the low average which is so
largely caused by poor farming ought
to be taken as a basis, because 1t Is
the value of the land that we want
and not the value of the farmer who
tills 1t. The general average all over
the state for long series Of years
has been from twelve to thirteen bush
els OF wheat to the acre. Eliminate
the poor farming, but taking into
sideration nnpropitAous weather,
weeds, and other things like that
which may not be the fault of the
farmer, the average would naturally
be much larger
We will assume therefore that one
year with another that fifteen bushels,
would be a fair average possible crop
though we know many farmers who
have averaged much more than that
for a long series OF years,
Now what is the cost Of raising that
fifteen bushels7 Paying good prices.
blowing will be $3.50, seeding and
narrowing. 81. cutting and shocking
81. threshing $3.50, seed $3.50, total
$3.50.
That is. IL the farmer finds that his
acre yielded him but seven bushels to
the acre at present prices, he has been
well paid for his own labor That he
has received the same amount that he
would have received if he had been
working out for another man.
AZ n. - - n
bushels then he has eight bushels
profit, which for quick figuring and
the cost Of marketing out, we will say
Is worth about ~.
The problem then becomes what liz
an acre Of land worth that produces
81 an acre profit? II money IS worth
10 per cent. as short time loans are
made In this country, thus 81 would be
the interest on an investment Of $40.
If we figure money worth per cent
as Is the rate On long mortgage loans
then the profit on the land would make
Ii worth 800 an acre.
Some farmers may take exception
to the above figures but they are based
on actual prices paid by this writer
who has Harmed 400 acres by hiring
the work done By neighboring farInr
ers at about the above figures for
several years
II Is also certain that the resident
farmer can work for himself cheaper
and at better advantage than he
who has farmed 100 acres BY hiring
ought to have many side lines that
are accommodating while he ii doing
other things He can raise chickens
cattle. horses, vegetables. etc, that