Saturday, August 30, 2008

The increasing value of arable land

As you look at current events and trends, you can't help but notice the increasing costs of fuel, and the trends toward composting, organic foods and alternative energy. I think these trends will increase the value of larger parcels while depressing the value of condominiums, and perhaps act as a force that will counterbalance the economic forces moving the populace near the population centers (fuel costs).

There are increasing amounts of labeling in the stores that indicate "hormone free", "organic", "not treated with pesticides", that show a consumer demand for foods that are not laden with chemicals. There are articles online and in newsprint that warn us that water treatment plants cannot remove many chemicals put into via runoff (chemical fertilizers and pesticides) and through our effluent (hormones and medicines that pass through our bodies). Now home water treatment companies are starting to take off, and you can hardly walk into a home depot without being pitched on one.

With all the above factors I see an increased demand for lots big enough for people to grow, at least some, their own food. There should, at least, be enough space for a greenhouse. The food grown could help offset some of the costs of the land, and I was in a farmer's market where "organic pesticide free" plums were being sold for $5/lb., so there might even be potential to make some money as well.

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