I am guessing this aint no Madison county rock farm. Sure hope the previous owner atleast had the stumps and thistle cleared out for that price.
Joe, My father in law was in my opinion the best at appraising the value of land and real estate. He pointed out more than once that he never made any real money farming but did pretty well trading farms a few times during his 70 years of farming.
One thing he never understood was why folks would pay more for purchase or rent than the farm would produce to make the payments.
In Iowa 22-30% of farm purchasers in 2011 were non farmers. Some rents of $500 have been reported and about 75% of farmland is rented.
Given all this the only thing I can think of is the expectation of inflation and favorable government subsidy to farm products. Or maybe some folks feel land is safer from government than stocks, cash, and other investments.
Someone educate me.
My children will be the 5th generation to live and work our current farm. Its nothing like the farms of the bootheel, but your typical Ozark hills homestead. Changing times made it necessary for its occupants to take on outside work since there isnt enough money to be made to support us all.
My great grandpa sold the old homestead claimed by his father to buy the current farm. He paid around $40 per acre and finished clearing the land. My grandpa was offered a adjoining tract of 500 acres in the 1950's for $100 per acre. The money was not available so he had to turn it down. To now here of farmland selling for $12000 per acre, it boggles my mind.
Joe, A few years back I know a farm near Vandueser was listed at $4,500 but I don't know if it sold for that much. I was told that good melon ground around Holcomb would rent for enough to pay for it's self fairly fast back 10 years ago. I reckon that gap has closed now with land and labor up. [I've heard it is harder these days to find folks willing to toss melons too.]
And Rick may have a point that hasn't been brought out in some of those Fed reports.
Some city folks will still pay pretty much per acre for small tracks of diverse properties for wildlife and get away purposes.
Very well may be something to do with the pipeline or other gov project. Hard to believe the land would ever turn a profit even with all the subsidy payoffs.
On the point of city folks buying rural land, I am nearly surrounded now buy people who have done just that. It starts when children of the older farmers loose intrest and move away. We had farms on 2 sides of us sold off to city folk. One was bought by a middle age couple who took early retirement from a auto manufacturer. The built a large modern house on the property, bought all the latest hay making equipment, and a herd of registered Angus stock. . Being someone who is always leary of city dudes, I was suprised to find them to be very nice, common sense type people. Everything seemed to go well for the first few years but lack of farming knowledge and overspending finally has caught up with them. They have informed us they are selling out and that their realtor is splitting this once nice farm into small lots for more folks to come in and build homes they can't afford.
By the way I won' even get started on the other feller who bought the 2nd farm other than to say first thing he did was tear out all the fence and build a runway through a fine hayfield to land his small plane on.
Land and property are only worth what someone will pay for it. That is the way life is. Only buyer knows what value it has to him and that is his business, not ours. Perhaps this land has more value for something other than farm. And if you haven't been to Hastings, NE...look it up on GoogleMaps. There are many trees or stumps to clear. It has already been done years ago.
To heck with farmland. The government can control is through legislation r can confiscate it in as hreartbeat.
The Jews had the right idea. Learn to play the violin. You can pack it in its carrying case quickly and stuff your few gold coinds in your pocket, then run like hell!
-- Posted by Nil on Fri, Feb 10, 2012, at 2:25 PM
This is people moving their money to a safe place void of the receding dollar. The way Obama is doing business is making investors look for something other that paper.
Look at what the BDI has done since the first of the year..
Nil, I think the favorable outlook for corn and soybeans is somewhat based on China'a growing economy. China and Japan have both upped their purchase of grains for animal feeds. Other factors such as soy based diesel and gasoline additives have driven up grain prices.
The Walmart effect that actually started in many other grocery chains has increased the demand for choice 1 beef in America and export of select and commercial grade beef is steadily growing. I get dizzy trying to think of all the factors involved in farm commodity prices, but as you indicate, all that can change into a bubble burst pretty unexpectedly.
Joe, "They have informed us they are selling out and that their realtor is splitting this once nice farm into small lots for more folks to come in and build homes they can't afford." You should copyright that into a book of classic words of wisdom by Joe Dirte!
One of my buddys bought a piece of pasture land out by Grandin a few years back. Being a successful auto shop owner, young and full of energy, he bought some fixer upper equipment and went into raising cattle. He made enough money to pay for his effort but decided to sell for another reason. He ran out of hay and was up there on a Sunday. The neighbor he had been buying hay for more than a fair price refused to sell him any on Sunday. He sold the place to the neighbor for a profit. Said it was a kind of sweet revenge for all the times the neighbors provided such Christian helpfullness with such a price. :)
You should copyright that into a book of classic words of wisdom by Joe Dirte!
-- Posted by Old John on Fri, Feb 10, 2012, at 5:38 PM
I probably couldnt fill a entire book with my 'wise words'. Maybe a napkin or business card.
I did have another bit of wisdom I passed on to one of our neighbors who bought about 5 acres near our place. I informed them that a strand of electric fence would not hold a buffalo in. Of course by the time I had informed them of this they had already figured it out(:
Joe, Does that mean the neighbor was buffaloed?
From what little I've heard about buffalo, where one goes they all go.
Those wires do a good job on dogs and high school boys.
Regret, Sounds like there might be a story to tell?
We promise not to laugh! :)
Most stories about barb wire and young fellows involves a brand new pair of overalls.
Dad told about the Indian or Henderson running through a fence along hwy 25 back when it was gravel one lane and concrete the other. Sure was rough on that new pair of Levies.
Might be time for a Donk tale.
The bad thing is land taxes will go sky high after they drain the taxpayer. The small landowner will get squeezed out.
there is a story about electric fences but it wasn't me.
OLD JOHN: Hey, I don't tell tales---I merely "distort the truth" to suit my needs...!☺
Ive seen a many dogs not pass though a gate with the wire down and would bite you if you pulled them.
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