"Have you ever calculated your ROACE - return on average capital employed, taking your current land value?"
Robo, to look at a farmers return by just using his ROACE is not giving a true picture. It would be similar to saying BHP is a dog as it's paid not much dividneds.
You have to add the capital gain of the land, as that is also a return. It has always been more profitable to own the land than farm it, and this will only be moreso as agricultural land becomes even more a growth asset. Growth in agricultural profits go straight into land values.
Growth assets have a low yield.
Farmers who have stuck through the hard times may have made not much income, but their land is where the real money is made. I would bet the total return, income plus capital gain is similar to long term stock market and residential property returns.
