> It's unlikely that there is pent-up demand for 5000 more households in a rural farm area.
Okay, then all the more reason for those farms to sell off some unused acres to alleviate what little pent-up demand there is. And if there are no unused acres, then it's best to work on getting more productivity per acre to make some unused acres.
The agricultural sector is in dire need of a kick in the rear to encourage better land efficiency; LVT is one heck of a kick.
> Farm land just sits there.
Then it ain't a farm, in which case all the more reason to sell off that land and make it available to someone else.
> It doesn't "cost" the local town/county anything.
It imposes an opportunity cost on everyone who would more effectively use that land, including other farmers with better methods (and also, more broadly, anyone else wanting places to live and/or work and/or play).