Land prices are crazy

[arnofarrell]

I don't know if there are many farmers here on Tnet or know about land prices but it is getting out of control here in Iowa. I remember a few years ago prices were around 2000 dollars an acre for farm land. Today prices are around 11,500 a farmable acre in my county. I bought my farm which has 20 acres, 13 of which are farmable, for about hundred thousand dollars. I could sell my farmable land of 13 acres and pay off my house and have a nice little profit. It is amazing. I saw an ad on CL earlier this week and a guy is selling 160 acres and he said in his ad that he wont even reply to anybody who asks to buy it for less than 10,000 an acre.

I guess my point is this "farming bubble" will crash soon because the reason land in my area is going up is because of the farm bill and ethanol. With corn being around 7 dollars a bushel and beans being around 14 at the moment if the farm substuties stop prices will crash. Before ethanol was main stream corn was 2 dollars a bushel and beans were 4ish a bushel. I can't perdict the future but I know these new prices can't last can they?

 

Amazon Forum Fav 👍

Minelab PRO-FIND 35 Waterproof Pinpointer Metal Detector for Experts with Tone ID & Adjustable Sensitivity - Grab it through Amazon!

[arnofarrell]

Here is a link to what I was talking about:

http://www.theblaze.com/stories/201...-is-happening-right-now-with-farmland-prices/

 

[liftloop]

we need to take the oil of the free market and turn it over to the states and star funding our dept with it instead of off the backs of the tax payer. take that pipe line that is coming put too refineries up at the boarder so when it come from Canada we can refine it sell one half to china the other half to founds are states got too go...

 

[Frankn]

One realtor once told me the thing to remember about land is they aren't making any more of it. Frank

 

[BosnMate]

You got a hot potato here, this could get really political really quick. The post will be locked or deleted if I speak my mind, so will just say as long as man caused global warming is being fostered onto us, the government will subsidize and prop up corn prices forcing ethanol off onto the driving public. If there ever is an administration that lets us go after and use our own oil and natural gas, without government props, corn will do a dive, and the price of land will probably go down, although not to previous levels. In my limited experience land doesn't seem to follow the value of production that comes from it.

 

[arnofarrell]

The main reason land in my area is up is because of the ethanol plant just 6 miles down the road from me. As long as ethanol is around corn prices will be up. If this keeps going on prices will be going higher and higher for farm land.

 

[fistfulladirt]

Even tho I paid off my acreage years ago, I am only part owner, as long as I pay property tax.

 

[bsloan]

thought it was just in my area that land prices were stupid. We have 5 acres across the street that the tax office says is worth 22K an acre. Other land has gone for 20K. Our property is a swamp, the soil is unstable, and holds water really bad. The 170 acres behind the house is valued at 12K per acre without mineral rights, but we could get a lot more by splitting it up for houses..

I remember 30 years ago, you could get 10 acres and a shell house for 20K, in a better part of the county and the land was better.

Bill

 

[Dan]

Im not a farmer.. but more people = more need for food. Driving land prices up. In fact driving all land and home prices up.

 

[arnofarrell]

I would say that the majority of the corn in my neck of the woods goes to ethanol not food unless you consider the buy product feeding cattle in Texas.

There is no longer the small farmer, there is a few medium farmers and a lot of large scale farmers with huge equipment and alot of acres. The large scale farmers are areally making out right now.

 

[TooManyHobbies]

Try buying land in CT. A two acre house lot will go 80-100K, without a house.

 

[arnofarrell]

In Minnesota my dad bought his house for 60000 on a corner acre lot back in the late eighties and sold it back in 97 for 300000. when he bought it the neighborhood wasn't there but when he sold it it was a huge suburb.

 

[ret-detector]

Even tho I paid off my acreage years ago, I am only part owner, as long as I pay property tax.

It's called, "renting from the government."

To the OP,

Want to trade an acre in IA for an acre in FL?
No one is going to make a profit on this deal.

 

[arnofarrell]

How much are acres running down in Florida? I could have a little winter retreat with out snow!!

 

[Tnmountains]

I put about 65 acres in the Gov Phil bredesen switch grass program. The program crashed but I got 3 times the yield in hay. I am shifting some to soy beans/corn rotation as they are setting record prices. Farm land here in Tn is stable. I have some tracts listed at 2 mil and one a t 3.5 mil. bluff land over looking valleys.But no one is buying large tracts. Just sold one house I had that appraised for 280,000 but only got 195,000 after being on the market for two years. It is a buyers market for sure here.

Dent corn is doing well also. You have to plant what you can sell. Here not many options.

Now they are talking of 15% ethanol that stuff will destroy everything. It is crap. We need those pipe lines but will never see prices go down on fuel.We do not have the refineries even built,,grrrr

We are getting a lot of transplants. Everyone moves south it seems I have not heard of many moving North. Good luck where ever you may be.

 

[arnofarrell]

I love out here in the middle of no where in the heart land. Iowa is a nice place with alot of friendly people. I bought my place for fairly cheap because it was on the market for atleast a year.

The price of grain is insane right now, I think it has reached a plateau in my area. We produce mainly corn and soybeans here and it has made alot of people a little richer in the last few years. We are slowly starting to see the grain price move from the field to the stores. I raise birds and every year the cracked corn and scratch feed has gone up about a buck a year for a 50lb bag. This year it went up 2 dollars. It doesn't sound like much but if you have to buy 10 bags at a time it makes a diffrence.

We are starting to feel it at the pumps now as well. I remember when E85 first came out and it was like 65 cents a gallon. It was always less than half the price of normal gas until a few years ago when all of a sudden ethanol plants started poping up. Once that happened E85 shot up to about 20 cents cheaper than gas. E85 is a joke and a waste of money, the only reason they keep making it is because the government substaties are paying for it and any money the plants make they get to keep.

I used E85 for a while when it was cheap because I couldn't afford gas that was almost 2 dollars a gallon, kinda funny now. Anyways E85 burned alot faster and took more to get the same miles as normal gas did. So in reality E85 was costing me just as much normal gasoline because I had to fill up more frequently.

 

[Silver Searcher]

Land prices crazy...try buying fuel over hear...now that's crazy

SS

 

[Silver Chronicles]

I don't know if there are many farmers here on Tnet or know about land prices but it is getting out of control here in Iowa. I remember a few years ago prices were around 2000 dollars an acre for farm land. Today prices are around 11,500 a farmable acre in my county. I bought my farm which has 20 acres, 13 of which are farmable, for about hundred thousand dollars. I could sell my farmable land of 13 acres and pay off my house and have a nice little profit. It is amazing. I saw an ad on CL earlier this week and a guy is selling 160 acres and he said in his ad that he wont even reply to anybody who asks to buy it for less than 10,000 an acre.

I guess my point is this "farming bubble" will crash soon because the reason land in my area is going up is because of the farm bill and ethanol. With corn being around 7 dollars a bushel and beans being around 14 at the moment if the farm substuties stop prices will crash. Before ethanol was main stream corn was 2 dollars a bushel and beans were 4ish a bushel. I can't perdict the future but I know these new prices can't last can they?

You spelled it out correctly when you stated that their is a land bubble. Next major sneeze in the stock market and you will see lots of investment properties for cheaper than dirt out their as major investors that rent out land will have to sell it to cover losses. Hang in their, be patient, and you will be rewarded!

HH Michael