R
Rae
Guest
Ghost, you sure know how to depress someone who would one day like to make a land purchase...
JNRBRONC
Well-Known Member
A recession might lower prices. I just saw recently that short term interest rates on bonds were higher than those of long term. Sometimes a sign of recession (maybe now it is a weakening Fed). Bond yields
If we face inflation with rising interest rates, land might not look so attractive at current prices.
If we face inflation with rising interest rates, land might not look so attractive at current prices.
fullrut2
New Member
nice ghost,
that is a good read.As far as land values going down.I would not hold my breath.Ask anyone who could have bought and waited and I bet they dont own it..someone else does.You may get some back door deal but across the board it is better than anything else.I know I cant trust the ceo's of cisco, microsoft and ge/gm..they cook the books to line their pockets.land is real and you can touch it.I really like that feeling...that just me.
doug
that is a good read.As far as land values going down.I would not hold my breath.Ask anyone who could have bought and waited and I bet they dont own it..someone else does.You may get some back door deal but across the board it is better than anything else.I know I cant trust the ceo's of cisco, microsoft and ge/gm..they cook the books to line their pockets.land is real and you can touch it.I really like that feeling...that just me.
doug
bjkpharmd
New Member
Rate of increase is likely to decrease, there may even be a small correction in some areas but too many things are different today than during the early 80s. Even if it flattens out, there are many intangibles in the kind of ground that most of us are interested in owning. Interest rates and CRP income will drive some demand but not all. I have never said "I wish I hadn't bought so soon".
dbltree
Super Moderator
[ QUOTE ]
I have never said "I wish I hadn't bought so soon".
[/ QUOTE ]
Ain't that the truth pharmer! Right now I wish I could buy more the way things are going. I've had people argue with me over the years on the benifits of investing in land, but I always figured "they aren't making any more of it". 20 years ago you could buy timber ground in this area for $100 to $200 an acre. Farmers didn't want it!! Who could have envisioned what has happened since then, but I think I can see where the future is headed as far as land prices!
I have never said "I wish I hadn't bought so soon".
[/ QUOTE ]
Ain't that the truth pharmer! Right now I wish I could buy more the way things are going. I've had people argue with me over the years on the benifits of investing in land, but I always figured "they aren't making any more of it". 20 years ago you could buy timber ground in this area for $100 to $200 an acre. Farmers didn't want it!! Who could have envisioned what has happened since then, but I think I can see where the future is headed as far as land prices!
JNRBRONC
Well-Known Member
Well, if it is any consultation, looks like lots more land will be on the market in the near future:
From Wallaces Farmer, January 2006
Land prices hit another high
The value of Iowa farmland broke another record in 2005, but the skyrocketing prices may be nearing a peak, according to Iowa State University’s annual survey. Average farmland price hit a record $2,914 an acre, rising almost 11% from 2004.
“2005 was the third straight year the state’s average farmland price has set a record,” says ISU economist Mike Duffy. Farmland prices have increased by almost 60% in the past five years. In comparison, the Dow Jones Industrial Average fell 4.5% from November 2000 to November 2005. The total value of the state’s 32.6 million acres is currently about $95 billion, making farmland Iowa’s most valuable resource.
Ownership is changing rapidly. Half the farmland in Iowa is expected to change owners in the next 10-15 years, as Iowa farmers get older and their heirs decide to sell. More nonfarm investors are buying farmland-a record 39% of the farmland that changed hands in 2005. Farmers bought 56% of the farmland sold in 2005, as opposed to 80% 15 years ago.
In 2004, Iowa farmland prices increased 15.6%, compared to 10.8% in 2005. More farms are coming on the market this winter, as land price increases appear to be slowing. Older farmers might be feeling that it is time to sell, says Duffy. A 2002 study of who owns Iowa farmland showed that almost half of the state’s land is owned by people 65 or older.
From Wallaces Farmer, January 2006
Land prices hit another high
The value of Iowa farmland broke another record in 2005, but the skyrocketing prices may be nearing a peak, according to Iowa State University’s annual survey. Average farmland price hit a record $2,914 an acre, rising almost 11% from 2004.
“2005 was the third straight year the state’s average farmland price has set a record,” says ISU economist Mike Duffy. Farmland prices have increased by almost 60% in the past five years. In comparison, the Dow Jones Industrial Average fell 4.5% from November 2000 to November 2005. The total value of the state’s 32.6 million acres is currently about $95 billion, making farmland Iowa’s most valuable resource.
Ownership is changing rapidly. Half the farmland in Iowa is expected to change owners in the next 10-15 years, as Iowa farmers get older and their heirs decide to sell. More nonfarm investors are buying farmland-a record 39% of the farmland that changed hands in 2005. Farmers bought 56% of the farmland sold in 2005, as opposed to 80% 15 years ago.
In 2004, Iowa farmland prices increased 15.6%, compared to 10.8% in 2005. More farms are coming on the market this winter, as land price increases appear to be slowing. Older farmers might be feeling that it is time to sell, says Duffy. A 2002 study of who owns Iowa farmland showed that almost half of the state’s land is owned by people 65 or older.