Land Prices?

[Brandonm22]

In Alabama most people aren't stupid enough to sell big chunks at one time. Piece it out in 100 - 220 acre tracts or less. I knew a guy who pieced out 877 acres into 24 different tracts at $1500 per acre and sold most of it pretty quick. Even the timber companies usually piece out their stuff.

 

[backhoeboogie]

I completely agree...I know alot of folks who are looking to dump cash into land to get it out of the banks. I myself would love to move quite a bit of cash into land, but I have my eye on a piece that is touchin me already, and though its likely going to come my way, it hasnt officially happened yet. I will certainly be excited though if it does. I dont feel safe with all my money in the banks the way its all been going.

It's insured to $250,000....a couple could have 5 insured accounts minimum.

If this capital gains tax goes the way it is currently being discussed, there will be a lot of folks flipping nickels into land. Prices won't matter much since they are simply trying not to fork over their money.

 

[Brandonm22]

If this capital gains tax goes the way it is currently being discussed, there will be a lot of folks flipping nickels into land. Prices won't matter much since they are simply trying not to fork over their money.

I don't disagree; but one problem with that strategy is that you get hammered by that capital gains tax when you sell land and Obama is reinstating the inheritance taxes so your kids will get hit hard if you leave a big illiquid estate. Also by hammering the upper income earners (over time) you will get an erosion in the number of people with the capital to buy your land assets.

 

[spoon]

There is a lady I've known all my life has a nice farm about 2.5 miles from me. It's about 230 acres. I ran into here the other day and as we were talking mentioned that if she ever wanted to sell it I'd be interested in it. She just smiled and told me she had turned down over $1,000,000.00 for it 10 years ago when Wal-Mart was looking for a place to build a distribution center. She turned it down because she wanted to keep it a farm the way her husband loved it. She leases it to a guy who raises some cows and hay on it and keeps it in top notch shape. Wally World located about a half a mile on down the highway. Now the farm next to her is being developed with roads and such for something. No telling what hers will be worth now. I don't think you can get a peice of land in this county for less than $20,000.00 an acre no matter how bad it lays. :roll:

 

[Alberta farmer]

In my area(central Alberta) land prices are in the $3000/acre range. Not going to be going down as the price has absolutely nothing to do with agricultural value, but more about city slickers looking for their own little piece of heaven! Most usually last about two years until they get sick of living on poor roads, poor utilities service, bored with country life, etc.! Then they sell it at a profit to the next dreamer.
It is very hard to justify buying land here if your purpose is to keep it and try to make a living at it.
About the only ones doing that are European immigrants who are flush with cash!
It really bugs me that these "city playboys" bid up the price of land without having any intention of trying to make a go of it by farming. Most of the old farmers children have long departed to the bright lights of the city.

 

[Jim62]

Marksman, one of you Houston folks just bought 975 acres of mostly brush for about $3,250 per acre just down the road from me.

Anybody that will sell land for $700 an acre must really be in a bind.

 

[marksmu]

I dont think it was so much of a bind, as the fact that what he was offering is not what the city folks want to buy. They want ponds/lakes, a nice grassy field with hills, and big oak trees, etc...and they want to buy it, the way its pictured in their head. Im a big picture person, I enjoy improving the land, and starting from nothing....When we bought, much the ranch was barren old rice fields...levys up and everything, 100% flat the water was not draining out of the fields, and it looked terrible....The whole ranch had less than 100 trees on it and most are in one small corner...rice fields fallow for 3 years with the levys up and nobody mowing, or maintaining just looks bad. Bean trees, and chinese tallo trees everywhere...very little good grass to be found.

We got it on the cheaper side for sure, but if your willing to put the work into the place to make it look like people what people buying want, you can drastically improve it. Fortunately for me I enjoy this type of work so the place is coming along. IKE was a huge setback - lost nearly 7 miles of fence, but were getting back over that with the help of our neighbors as well. Its one day at a time, and eventually I will have a place Im proud to say I made from nothing.

Now- 2+ years later we have a 77Acre DU pond, that drains 2 fields to capture their water, 2 improved 100Ac pastures, 1 coastal bermuda 1 bahia....the remaining 500+ acres we have maintained, but mostly lease to my neighbor who has more cows than he could ever graze...but eventually I hope to have a herd that will fill the whole place myself....but its one step at a time. Im in no hurry b/c its not my primary job.

 

[Brandonm22]

In my area(central Alberta) land prices are in the $3000/acre range. Not going to be going down as the price has absolutely nothing to do with agricultural value, but more about city slickers looking for their own little piece of heaven! Most usually last about two years until they get sick of living on poor roads, poor utilities service, bored with country life, etc.! Then they sell it at a profit to the next dreamer.
It is very hard to justify buying land here if your purpose is to keep it and try to make a living at it.
About the only ones doing that are European immigrants who are flush with cash!
It really bugs me that these "city playboys" bid up the price of land without having any intention of trying to make a go of it by farming. Most of the old farmers children have long departed to the bright lights of the city.

Here in Alabama, they usually don't live there. They might lease out active fields to crop farmers or hay growers; but the property is not managed for agriculture and they might build a lodge or a cabin but unless they are big enough to hire a full time manager usually no one lives there. Generally groups of 10-20 lawyers, businessmen, whatever pool their money and buy a property from 40 to thousands of acres so that they have a place to hunt. They make their money back growing trees and from land price appreciation.

 

[BeefmasterB]

Hey now - lets watch the Houston idiots slur there - And ESPECIALLY dont group us Houston folk in with the Austin crowd. Anywhere you get a large population of folks in a small area, the larger tracts around it are going to be more expensive. Its a fact of life - people hate being crammed into a city, and want some peace/quiet on the weekends, so they buy country land too. It does run the prices up, but there are still good deals to be had. You just have to look

Just 2 years ago, we picked up 800 acres, of land 55 miles outside of houston WITH a 1 year old barn and apartment, 2 tractors, and various pieces of equipment, along with 50% mineral rights AND producing wells already on site, for not even $700/acre....I am about to add another 1800 acres to it, for $300/acre b/c a landowner has sold off all her street access, and just found out she cant sell to anyone except someone touching it...which I happen to do.

So PLEASE dont group Houston with Austin...were not a bunch of Obama loving hippies...there are some good folks here.

Well said Marksmu!!! You got a great deal at $700 an acre. Go check the Brenham area in Washington County and you'll see prices up to $12,000 an acre. And that HAS been driven by the Houston crowd simply by way of proximity to the oil money in Harris County and surrounding areas. How Texas $'s could be increasing land prices in another state is totally lost on me!!

 

[TexasBred]

Hey now - lets watch the Houston idiots slur there - And ESPECIALLY dont group us Houston folk in with the Austin crowd. Anywhere you get a large population of folks in a small area, the larger tracts around it are going to be more expensive. Its a fact of life - people hate being crammed into a city, and want some peace/quiet on the weekends, so they buy country land too. It does run the prices up, but there are still good deals to be had. You just have to look

Just 2 years ago, we picked up 800 acres, of land 55 miles outside of houston WITH a 1 year old barn and apartment, 2 tractors, and various pieces of equipment, along with 50% mineral rights AND producing wells already on site, for not even $700/acre....I am about to add another 1800 acres to it, for $300/acre b/c a landowner has sold off all her street access, and just found out she cant sell to anyone except someone touching it...which I happen to do.

So PLEASE dont group Houston with Austin...were not a bunch of Obama loving hippies...there are some good folks here.

Sounds like you ran into a complete idiot on this one...especially if he sold 50% of producing minerals along with the surface rights.

 

[FarmGirl10]

In our area bare land starts at about $5,000 and a bit to the north it's been known to sell for $10,000 an acre. It's crazy around here.

 

[denoginnizer]

Ive seen it from 1300 to 3000 . 3000 will get you top notch with house and barn. www.billmackey.com has some good ones for sale.

 

[cross_7]

Chaves County, NM Ranch

70,000 +/- Deeded Acres - $110.00 per acre
Chaves County, New Mexico

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Working cattle ranch rated at approximately 1,600 animal units. This is a low overhead "no frills" ranch operation. If you are looking for a working cattle ranch, priced to fit a rancher's pocketbook, you won't find a better opportunity.


Bomar Division of the Nail Ranch

10,990 +/- Acres - $2,250.00 per acre
Shackelford County, Texas

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An exceptional find, just minutes from historic Albany, Texas. This ranch offers diverse terrain, excellent hunting and large neighbors. Live creek water for approximately four miles and several nice earthen ponds. City water piped to property, and new lake construction currently under way. Possibility of purchase in smaller tracts if desired, with price negotiated depending upon tract.

 

[Brandonm22]

"10,990 +/- Acres - $2,250.00 per acre
Shackelford County, Texas"

I am not saying that that is NOT a good deal; but if you really got $24.7 million to spend.....that wad would generate $741,000 a year in interest at 3% and I really doubt that ranch clears that much on cattle year in and year out. I hate to say this.....but IF I had that problem I think I could find a nice ranch to entertain myself with for $4.7 million and invest the other $20 million.

 

[Rob Johnson]

Three grand an acre here in East Central Minnesota, which will get you a mixture of tillable, woods and marsh. I bought a forty two years ago that is 20 tillable, 10 woods and 10 marsh. Paid $120,000.00. Was going to use it to expand my herd but now want to downsize.

 

[Rod]

At least $2,000 an acre around here. Not too many large tracts left and the smaller ones will bring $5,000 an acre.

 

[SRBeef]

Three grand an acre here in East Central Minnesota, which will get you a mixture of tillable, woods and marsh. I bought a forty two years ago that is 20 tillable, 10 woods and 10 marsh. Paid $120,000.00. Was going to use it to expand my herd but now want to downsize.

May I ask why you changed from expansion to contracting your herd? Markets? Was there something about that forty that changed your mind? If its too personal just ignore this.

Regardless of what's going on in the rest of the economy, I just don't see MOST farm land coming down in price very much if at all. Yes in some areas it had been bid up maybe a bit high.

The overriding trend I see however is that there are many row crop folks/neighbors to a tract for sale who are sitting on some paid for or near paid for acres and will pay high prices for adjoining or nearby land and spread the cost over their other owned acres. They look at the ability to cut machinery costs by running a few more acres or to bring a son or daughter and family into the operation and are willing to bend the accounting on these acres to do it.

 

[Rob Johnson]

The markets have the most to do with it. That and being a one man operation. I work off Farm nights for health Insurance benefits. Getting home at 1:00 am and getting out to do chores in the morning gets rough at 30 below. I feel I can't do the job and it's not fair to the cows. I just had a cow die of a Uterine Prolapse. If I could have spent more time with the herd I may have found it sooner and she would be alive today. The hardships don't seem worth .43 that were getting at auction around here.
As far as the forty, that was one good thing I've done lately. I sold Fannie mae stock when the market was at 14,000 and paid cash for it. That stock today is worthless.

 

[dieselbeef]

timing is everything

 

[iowafarmer]

It topped out at 8,000 an acre for tillable here i think its around 3,000 to 5,000 rightnow but not many people are selling in the area, rent has dropped like a rock though in about half from about 300 to150 an acre