Ben Curthoys on Nostr: The value of land is based on the most profitable possible use of that land, because ...

The value of land is based on the most profitable possible use of that land, because the person with the most profitable use in mind is the one who will pay the most for it, so if farms are using up land that would be more profitable as something else, then economic theory correctly predicts that the return on the assets that farmland represents will be low. And the sensible thing to do would be to let the farms go bankrupt and use the land for something else.