Extra Special Ag Loan Reviews ?

[Stocker Steve]

Our local bank is currently reviewing ag loans. Usually they do this after year end. Sounds like they are starting to worry.

Renters have propped up the ag land market here. Lots of "retirement auctions" - - but someone who's equipment is not worn out yet is there to rent the land, even though the talking heads say there is no profit in it.

What are you seeing in your area?

 

[ddd75]

paying 5500 - 10k / ac still here. usually traded by neighbors or word of mouth. hardly ever an auction or a for sale sign. yields were great here this year beans hitting 80 and corn 220 bu

 

[bball]

Our local bank is currently reviewing ag loans. Usually they do this after year end. Sounds like they are starting to worry.

Renters have propped up the ag land market here. Lots of "retirement auctions" - - but someone who's equipment is not worn out yet is there to rent the land, even though the talking heads say there is no profit in it.

What are you seeing in your area?

Seeing the same here. Several chunks of land for sale currently( no one is moving in on them). One next door even, but the asking price is absurd for marginal ground

 

[bball]

Rentals are $185 or more for ground that'll make 220 bu + if you get the rain.

 

[ddd75]

ppl advertising in the paper here they'll pay 220/ac minimum for ANY ground.

doesn't seem to be worth the time but i dunno

 

[Turkeybird]

People here move in and pay that high rent, but none have lasted more than 4 yrs.

 

[Stocker Steve]

People here move in and pay that high rent, but none have lasted more than 4 yrs.

Easiest way to lose money is to farm a long ways from home. :nod:

 

[Stocker Steve]

More and more rental land here as small farmers "retire". There seems to be several renter styles that have emerged due to this:

1) Good Farmer - seeds down poorly drained areas, restores soil, and gets great yields on the remaining row crop acres. Two of these in my area.
2) Insurance Scam - plants whenever and uses little or no fertilizer to generate positive gross margin off of the average count yield base on new land. Three of these in my area.
3) High Volume Optimist - picks up any land that is close to home and hopes for price improvement. One of those in my area.

Any renter styles to add?

 

[Turkeybird]

Yes, add greedy ones that just don't want anyone else to advance, but ends up losing his butt

 

[Dave]

Not much plow in the ground farming near me. Just lots and lots of cattle ranches. The asking prices seem to run about $10,000 per cow carrying capacity. I don't see how the cows pay for that. The vast majority of expansion is through leasing ground.