Should i say Foolish Decision.
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.
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.
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