cropland hits new high in my area

[Tony Eickman]

There was 80 acres for sale on a special auction on Monday 1/2 mile from my mom and dad's farm.  The bidding started at 6700 and quickly climbed to an astonishing $8200 an acre.  The crop rating is 66 for corn and 60 beans.  It was a beginning farmer who bought with family help which I commend him for but at the same time he will not make money on that farm for a while.  Everyone at the auction thought it was insane to spend that much on land. 

[jared lockwood]

ground around here if it comes up for sale goes anywhere from 5000 if your lucky 7500 about avg. a bunch of people got bought out by some big companies moving in around here somewhere around the range of 25000 to 50000/a so they are buying whatever they can to get rid of the money raising prices. cant hardly buy around where i am at at all kinda sucks

[Matt Folsom]

40 at auction in North Central Iowa went for $9100 yesterday.

[Calob N. White]

Should i say Foolish Decision.

[jared lockwood]

117 acres of some not so good ground for southern indiana prob max 175 bu corn went for 11,300 acre. o was in about 5 different fields at that!!!

[steve]

Was this the ground on Hy 68...............i missed that auction.  Went to another auction monday it went for $9,300 acre for rolling ground and it floods. This guy that won the bid also got a house an a barn with the ground all this on 29 acres.  Total price was about $390,000.  This guy also works for Walbash Vally grain so he can hit all the hight prices on crops.

[jared lockwood]

sure was on 68 didn't go myself . north american green guy bought it. there is alot of people with money to burn around here especially in that area. wish i had some burning a hole in my pocket.

[steve]

Same here ............seems like i work harder and not getting anywhere..... was working at toyota but had to give that up..... they where working me to death and with the pain in my arms an hands it was makeing it hard on me to do the farm work.  I did hear a north american green guy bought it and alot of other farmer lost ground to the interstate Hy they are building so they have some money to burn also.

[Todd Lewis]

There are two kind of land purchases. The first one is a farming purchase, one that you plan on farming and making a living on. The other is a land love purchase. This one is just like the one that sold on this thread. It is close to home, look at it everyday, would LOVE to own it someday and the cost really doesn't figure in until the first couple of seasons goes past. The later one can dig a hole real deep real fast if emotions are involved.

I can't say for sure what is going to happen in the future, but the 80's happened once. It can happen again real fast especially with all the turmoil in the middle east right now. Bank it right now? Spend it on land? Who knows? I do know that alot of the older farmers around here banked it in the 70's when land prices jumped then turned around and bought a ton of land when the prices crashed in the 80's. Now it's all paid for and they have a pretty good nest egg for retirement. 

[Ty Meyer]

I have been watching the market very close here the past 3 months.  I have discovered that interest rates were low especially for FSA first farmers loan, but it is not a good investment right now at least if it is over $5500 an acre.  Trends will come to a slow down and may come to a end, by trends I mean people going crazy and spending their live savings and what they will be making the next 15 years off of that land on all their payments.

 

Here is my suggestion to what has happen the past year.  Grain prices went up, Grrreeaatttt! but why... A poor crop harvested, here in the states and around the world at least for wheat.  Brazil has began their harvest and they are having a good to above average year.  I am also looking to invest in some land and hope to with Gods help in the next few years.  But I recommend wait and see what happens this spring. If crops go in good, interest rates will increase and prices will fall for land also the demand will decrease.  If prices do not change by june to july, I will end up probably buying land at these high prices. Good luck guys hope spring goes good for everyone.

[dale a. Brandt]

hello ty,

 

you have a great attitude in your patience to buy land. i bought my first farm in dec. and i should have done it like 2 decades ago. i figure you can't own a thousand acres until you buy your first 40 or 80... so just do it. my purchase was a private sale and a great deal. my yearly payment will be a fraction over current cash rents...but i put over 1/3 down in cash. I would suggest if you are that concerned about affording it... go buy a 40......its a start1

 

good luck

 

dale

[Successful Marty]

more dollars than sense

[Ed Winkle]

It is insane.  It won't cash flow, there is no way around it.  There must be more to the story.  Lots of land was bought on selling higher priced land near the cities, gifts, inheritance or whatever.  There must be some other money there.  A banker wouldn't go for that one, at least mine wouldn't.