THE VALUE OF THE AGRICULTURAL LAND

Before 2008 anybody wihcih own a piese of land somewhere in te neighbouhood of a large city believe that the land is gold and his land is a 24k gold....Doesn't matter about details like roads, utilities, economic evolution of the city , demography... Any owner claim in that period incredible prices for any square meter. The time has pass and the lands are still in the middle of  the fields 90% of the real estate projects died before to be born because of the crisis. The owners which refuse good deals in that time now they have no offers from the developers. So they must take in consideration that their piece of land is just an agricultural plot. Not bad. Because the romanian solis are excellent for agriculture and the profit could be very big. But somebody must do something for. So, the management of a plot is very important . before everything the size of an agricultural  property is very important. Some properties are little (until 10 hectares) and the best solution is to fond a farmer which can make a contract with you. He will pay you every year around 150E-200E/ hectare. If your property is a middle size one (10-50 hectares) sure the options are many. The most simple one is to make a deak with a local farmer, which can guarantee a minimum income (probably 200E/hectare). The second option is to take in consideration to start your own agricultural project. Hire some people, sign contracts for special agricultural works (sowing, plowing,  threshing etc) find buyers for the crop, sing contracts to conserve a part of the crop for the winter (when the prices are bigger) . Of course the job si not easy but the profit could be vaery good. With a medium management a hectare could make 6-7 tones of wheat. that mean at least 850E /.hectare (brutto). Probably the netto number is around 500E. So. Is 150 % more that the initial option. With a good management the production could increase until 10 tones/hectare. The last calculation will take in consideration larger properties. Over 100 hectares. Over 100 hectares means around 225 american acres. Not a big farm in american terms but a larger one in european terms. Over 100 hectares need a plan in order to bring the best profit. Tha latest economical informations announce very nice profits. About 50000-55000E.100 hectares. The Nana property of Basescu' family  (300 hectares) announce a 144.000euro profit for this agricultural year. Especially from wheat, corn and rape (a little yellow pland which make a sort of vegetable oil) . The entire Nana property cost around 1,1 million euro. So, the profit is huge - around 15% returning on year. In the same time the value of the land increase. Only by the market generally  informations, the hectare of the land in southern part of Romania is about 4500E/hectare. And the trend could be very positive, until 10000E/ha. because this is the normal price in Europe for a good agriculture land. If the oil price will increase because of the latest evolution the price of agricultural products will increase severly, because a big part of the worlds cereals come from Argentina, Australia and New Zealand. So if the cost of shipping will severly increase sure he cost of food will increase. Recomandation is simple. By the land for food now. Is better like the "blue chips" from the Stocks.