Land Prices??? 1031's

[ronr]

I was wondering how high the Land prices are in your part of the Country??? Here in Iowa they are an all time high. I'm a 35 year old Farmer. I'm Paying on two Farms and I am looking for a third. I have two issue's to express. The 1031 exchange is killing us young guys. Outside Investors are playing with these Farms like they are Stocks. Let me tell you My Farm is not a Stock. I'm not going to "Short" my Farm. I'm curious to see what happens when the new Farm Bill Comes out.

I value your imput. Thanks!!!

Ron

 

[flaboy+]

Ron, land prices are sky rocketing everywhere. It seems too many folks have way too much money and just go around buying up stuff. I really can't offer any good advice except that they are no making anymore land. When it is gone, it's gone.

 

[jkwilson]

High here. 8 years ago we bought some land for $1500 an acre. Had to finance while we sold another place, and the bank would only go $1400 based on appraisal. Neighbor just sold 80 for $2200 an acre. This is rocky, hilly (for Indiana) stuff that is marginal crop ground. The black stuff to the west of us is in the $4000 range these days.

 

[ronr]

Flaboy...They are not making anymore land.... true. Something to keep in mind. The is a LOT of land in my County that is in the ten yr. program. The Goverment has already said they will not renew 2/3's of the contracts for another 10 yrs. When that happens...suddenly there will be a lot more land out there.

 

[flaboy+]

Flaboy...They are not making anymore land.... true. Something to keep in mind. The is a LOT of land in my County that is in the ten yr. program. The Goverment has already said they will not renew 2/3's of the contracts for another 10 yrs. When that happens...suddenly there will be a lot more land out there.

I do not know what you mean by ten year programs. We don't have them down here. I have a neighbor that is selling 80 acres in 5 acre plots. $250,000 for 5 acres. Should give you some idea of what's going on down here.

If it keeps going up, I will sell and move up to Beefy's area.

 

[MoGal]

Its unreal here as well. Up the road about 3 miles is a 42 acre tract for $217,000.

Land is anywhere from $5 to $10,000 an acre and they divide the farms into 3 to 10 acre tracts and it sells. At that rate, I'll never be able to buy enough acreage for my cows.

 

[Crowderfarms]

It's getting higher here all the time. Anywhere from 1500.00 an Acre to 5000 and up. The trend here is to sub-divide and conquer.It's turning into a bedroom community for Nashville, at least at the South end of the County, and starting to show signs up here too.I have nightmares of developments going in.Some of the most majestic farms here have been bulldozed and built on.Money is great to have, but I'm not about ready to sell.

 

[ronr]

flaboy. You asked about the Ten yr. Program. It is one our Grand Goverment Programs that is suppose to take Grain off the Market. It started back in the 80's when we were swiming in Corn. Basical the farmer gets paid to seed the farm down to grass for ten years. Not a bad deal for some of the older farmers.

The things is the Grain prices really never reacted other than a few yrs in the 90's. Now our productivity has brought us back to where we were. The Goverment has made it clear the support for such progams is slowing.

As I see it looking forwad there is going to be much more acres coming into the pipeline in the future. What does this mean for land prices??? Not sure.

Here in Iowa the Average age of the Famer is creeping up there. In the end...someone is going to have to farm those acres.

Outside People who are looking at this Farm land as an investment really should take a second look. We have been blessed with a Farm program which has distorted the real Farming income. In the County that I live in it is estimated that 46% of the land value is supported buy the Goverment program.

I understand that we live in a free and open market system. I'm not proposing a law outlawing the outside money. I feel as a guy in the business...they should take a second look at their R.O.I.

Hell...check out a C.D. Safe, Stable, and rising.

 

[easter]

it really makes me mad when someone buys a nice farm and splits up into parcels.many folk have worked thier whole life trying to keep it together and have some wantabe farmer come in and buy it and then spliit because he dont know a hoe from a ho and dont really love the land like some of us do.ok i'm done just had to vent a little.

 

[norriscathy]

Maybe I shouldn't speak out; but land is still reasonable here. We've got a climate similar to mid Alabama and Mississippi but $1,000 per acre is an outrageous price to pay for pasture land WITH decent improvements.

 

[ronr]

norriscathy...Just surious....What does that land Yield?? Bu./acre??

Three things are driving the prices here. Productivity, 1031's, and at the time not a lot of land in the Market as a whole.

One other things in regards to outside people subdividing Farms. Your not welcome HERE!!

Have a great Day!!!

 

[Farmhand]

I'm not sure that you described the ten year reserve program quite right. It's official name was CRP. Can't think right now what the initials stood for. I worked for the Soil Conservation Service (now known as Natural Resource Conservation Service) when a lot of this started going in. It was ment to take Highly Erodible Land (HEL) out of production. Don't remember anything being said about getting grain off the market. Most crop rotations here are corn, soybean rotation. Wind and water will take a lot of top soil off of HEL ground. The only way to stop losing top soil is to plant a more intensive crop, drill crops, leave lots of residue, or plant to grass. A lot of people didn't want to or couldn't afford to change how and what they planted so this program came about. A lot of CRP ground is also doubling as buffers for streams. Crop ground was being lost to erosion from water runoff. Grassing the area next to the streams kept the soil in place and helped stop chemicals reaching the water. The program allowed a farmer to still receive an income for this ground while being a good neighbor and protecting the ground through conservation.

 

[ronr]

Farmland..... Yes it did take the highly erodible land off of production. In my area (great cow country) there were a lot of farms that farmed places it shouldn't have been. Ditches and soil was washing down the mississippi. It has done an execellent job taking that ground out of production.

With all that said I think it was an Politcal Spin to help with the Grain prices. Remember the 80's.... High Interest, Low Commodity Prices, Land Devaluation, Farm Foreclosers. There was a lot of Press and Political pressure to get something done. I'd be willing to bet you a large sum that if we had $2.50 Corn and $75 Cattle the Program would of never had the power to get going.

I'm not bad Mouthing the Program. It has it good points However now we have a ticking time bomb on us. You might think I'm Crazy. Just look at the acre numbers.

 

[Farmhand]

I don't think you will see much of a difference having those acres back in production. As you said, taking them out didn't really make a difference, don't think putting them back in will either. I don't think you will see a lot of land coming up for sale either. Whole entire farms were not put into CRP, just areas. When these areas come out, the person farming the rest of the ground will just start farming the CRP ground as well. I also don't think all of it will be tilled back up to crop ground. I am thinking a lot of what was put in around streams will stay. A lot of them will want to keep the erosion control in place. Some of the larger areas might not come out either. I imagine some of it was difficult to farm in the first place so since grass is established, they may decide to run cattle on it instead. Just my thoughts.

 

[ga. prime]

As suggested by flaboy, outrageous land development in fla is sending the natives into ga. Fla transplants are the most aggressive bidders on land in this area. Prices are steadily increasing. For example, my family leases land for deer hunting to a group of Floridians, one of which works on a 1400 ac potato farm 40 miles or so out of Jacksonville. Last year the owner of the potato farm was offered $20 million for it by a land developer. How can you turn that down? I have heard similar tales from some of the other lease hunters. Where all this money is coming from is what I want to know. Ga. and the rest of the East Coast gets most of its winter produce from fla. I guess in the future we'll be eating out of cans come winter. Or paying a lot more for fresh.

 

[norriscathy]

norriscathy...Just surious....What does that land Yield?? Bu./acre??

Three things are driving the prices here. Productivity, 1031's, and at the time not a lot of land in the Market as a whole.

One other things in regards to outside people subdividing Farms. Your not welcome HERE!!

Have a great Day!!!

We have a cattle operation in the sandy hills of East Texas. In a normal year we can carry an animal unit every two acres. The Red River is not far from us and river bottom land is not much more expensive; a lot of it is fallow now. Normally along the Red River 30 bu bean is fair, 50 bu beans great. Not sure how that compares to your area.

 

[coolwater]

I was wondering how high the Land prices are in your part of the Country??? Here in Iowa they are an all time high. I'm a 35 year old Farmer. I'm Paying on two Farms and I am looking for a third. I have two issue's to express. The 1031 exchange is killing us young guys. Outside Investors are playing with these Farms like they are Stocks. Let me tell you My Farm is not a Stock. I'm not going to "Short" my Farm. I'm curious to see what happens when the new Farm Bill Comes out.

I value your imput. Thanks!!!

Ron

i live in east texas and undeveloped land here in my area goes for about 3000.00 - 4000.00 off the beat and path.highway frontage is a little more.ive seen fenced pasture go up considerably higher.