Buck Hollow Sporting Goods - click or touch to visit their website Midwest Habitat Company

$30,000 an acre farm land.

hillrunner

hillrunner

PMA Member
I don't think I've seen this discussed yet. Things are always too high up here in the NW corner of the state, but this is high even for here. That's almost 2.2 million for 73 acres of farmland. I like land, but dang, that's a lot of money for a piece of ground just for the privilege of farming it. Farming sure must be fun to fight that hard for every acre! I wonder what that piece would have sold for 20 years ago?
zomercompany.com

November 11, 2022 @10:30 A.M.-Upcoming Live Public Auction Of 73+/- Acres Of Farmland In Lynn TWP, Sioux County, IA Located Northwest Of Hospers, IA, Northeast Of Newkirk, IA, Southeast Of Boyden, IA & Southwest Of Sheldon, IA! - Zomer Company

Upcoming Live Public Auction Of A 73.19 Acres Of High Quality Farmland In Lynn TWP, Sioux County, IA This Farm Consists Of 73.19 Acres And Is Located Northwest Of Hospers, IA, Northeast of Newkirk, IA, Southeast Of Boyden, IA & Southwest Of Sheldon, IA! This Is A High Quality Inside Tract Of...
zomercompany.com zomercompany.com
 
Yeah, that ain’t farm ground. Must have other plans to cash flow it.


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JNRBRONC said:
Yeah, that ain’t farm ground. Must have other plans to cash flow it.


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Click to expand...

Actually Randy, I think it is "regular" farm ground. I read about this in a couple of other news outlets. Multiple neighbors bid each other up, etc, but it is a high quality piece of farm ground.

How one could "pencil it out" at that price I have no idea...but the previous high water mark was just a week or two earlier, under similar circumstances, at around $26K/acre. Wow...I am glad I bought what I bought when I did.
 
I guess it comes down to opportunity. We “over paid” for an adjacent 80 with the thought, “When will we have the chance again?”

It wasn’t that “over priced” though.


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NW Iowa fellas is cattle and confinement country. Think beyond crop farming. Gotta go somewhere with all the manure. Can’t expand animal production without a place to spread the liquid gold. And of course to build more building sites on.
 
God only made so much land. That's a famous quote but does affect the price of land. Buildings come and go but land can't be built. The price is also affected by supply and demand. If there's more shoppers than there is land available for sale, then that pushes the price upward and can cause bidding wars. Some buyers panic thinking if they wait prices will keep going up and they won't be able to afford to buy in the future, so they bid up and up not to miss out. If you already own land, then you want the prices to increase as much as possible to prove you made a smart investment. Location, location, location has always been a huge factor in real estate prices. Rich soil farmland in parts of Iowa is significantly more costly than my Appalachian foot hill land. I would advise that the frugal approach would be to find timber land not farmland as it would probably be cheaper and the timber in 10 to 15 years may bring in 150% of what you paid for the land. You'll need to work your butt off altering (food plots, minerals, creating bedding areas etc.) the land to get more and healthier deer on the land.
 
We recently passed 8 Billion living humans on the planet. Mother nature has a way of thinning the herd when over population occurs. I think I'll wait this one out for the next 'actual' pandemic to sweep through, and if I'm still on the top side of the grass after it blows through, I'll scoop up some land at a much better price. ;)
 
What is happening is that as farmers have grown in size 300 acres used to be big. Now there are families that rent and plant 20,000
actual acres. There are farmers and people out there who have massive cash on hand. So they can pay what they want for a piece next to them that they really want. Cash flow has nothing to do with it.

The roaring 20's were followed by the 1930's. One never knows but a massive correction could happen sometime.

As far over population goes I don't buy it....yet. Every human on the planet can stand in Texas on a 30 x 40 foot plot of land. That leaves the rest of entire world void of humans. Time will tell.
 
This sale is the poster child for a pissing match. Local landowners in a struggle for close acreage. I get that.
 
There was a guy in Minnesota that sold his hunting land back in the year1999- 2000 roughly . He went to the Minnesota Deer Classic had a booth all weekend with mounts, pictures, maps etc.. of his 500 acre farm .

He ended up selling it to a guy in the Minneapolis/Twin Cities area for $1100/acre and he bragged to me… …
nobody had sold recreational land for that much in this county!! Never, unbelievable… so happy !!

This is prime parcel that has tillable, CRP, planted spruce and pine trees that are 30 foot tall… 1/2 Mile of lakeshore on a shallow walleye lake—full of fish. Big Bucks occasional one over 170 inches, hundreds of pheasants!!

Incredible really for Minnesota

I talked to same guy who was so proud of the sale the other day and he’s like “damn I wish I had that land back, I’ve been buying lottery tickets so hopefully… God willing … buy it back !!”

It’s probably worth 3 to 3.5 million. Possibly more .
 
What would it have done 20 years ago? Check this out below with land data figures
& check out todays data. They clearly got into a pissing match where $ didn’t matter cause they probably overpaid by 50%. & for now…. They probably don’t care.
They also paid about 10x the cost of what it would have sold for 20 years ago.
2.2 million & lets say they can clear a $1000/acre profit right now if they pay cash for land…. $73k income….. which they did not clear $1000k this year up there by a long shot but let’s just say they did and will and paid cash. With no loans & no property taxes- clearly a high dollar $1k/acre profit is a 3.3% gross roi. If they clear $500 profit, clearly it’s 1.65% roi. If they “borrowed half the money” against paid off farms - they are totally fine but they are losing $ to own it. I think the mindset has to be and is: “I don’t care. I don’t care if I got bent over. I have to have it. I can absorb the loss. I got enough other stuff paid for. I’ll pay whatever obscene price I have to”….. right, wrong or indifferent - that’s what happens here.
When that game & mindset changes: wait til we have 2-3 years of low/no profit farming. When corn retreats $2 a bushel & folks are paying 6-10% interest on land & LOC & they are locked into $400-500 cash rents. The amount of people willing to throw any amounts at farming will come down. We’ve seen this rodeo before. 3 years ago there was a good amount of farmers who didn’t make it or who were barely hanging on. 2 “good years” & those memories fade extremely quickly. Smart conservative folks will always be fine for most part but there’s a part of the pie right now that’s biting off more than they can handle and if/when things go down- they are gonna be completely screwed. History repeats like this over and over and over.
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bluedog69 said:
What is happening is that as farmers have grown in size 300 acres used to be big. Now there are families that rent and plant 20,000
actual acres. There are farmers and people out there who have massive cash on hand. So they can pay what they want for a piece next to them that they really want. Cash flow has nothing to do with it.

The roaring 20's were followed by the 1930's. One never knows but a massive correction could happen sometime.

As far over population goes I don't buy it....yet. Every human on the planet can stand in Texas on a 30 x 40 foot plot of land. That leaves the rest of entire world void of humans. Time will tell.
Click to expand...

It takes a lot more than a 30x40 plot of land to actually sustain a human.
 
hillrunner said:
It takes a lot more than a 30x40 plot of land to actually sustain a human.
Click to expand...
Not saying this would be fun. But picture a lot of what we have already. Tall buildings housing lots of people. Lots of vertical built greenhouse types of structures and small animals being raised.
We are about to the technology point where it might surprise people how little acreage it would take to sustain people.

Didn’t say it would be any fun at all but sustain. Possibly?????
 
I'm hoping we see a good correction somewhere down the road.. I'm keeping some gunpowder at the ready...
Can this madness go on? I keep pretty good tabs on prices in my area, and prices are actually going up still...inventory is low around me.
 
deerdown said:
I'm hoping we see a good correction somewhere down the road.. I'm keeping some gunpowder at the ready...
Can this madness go on? I keep pretty good tabs on prices in my area, and prices are actually going up still...inventory is low around me.
Click to expand...
There will be one.....when and how much is the unknown.........Like the stock market when everyone says this is the new norm of high prices and it can only go up a big correction happens........we are now seeing the big firms Goldman sachs, Amazon, Twiiter, Cisco, Fedex....etc. laying large amounts of people off. This will come to small town America in time.

Imagine what would happen it a War broke out between two major counties.


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