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

Land Market Hasnt Slowed down

Guys with a lot of cash are still buying the top end hunting farms at ridiculous prices. I'm thinking about selling my farm to an individual that wants it, but I cannot find another good farm to 1031 exchange into that is priced right.
 
tall@wide said:
Guys with a lot of cash are still buying the top end hunting farms at ridiculous prices. I'm thinking about selling my farm to an individual that wants it, but I cannot find another good farm to 1031 exchange into that is priced right.
Click to expand...
This exact scenario is actually one of the primary reasons underpinning the high prices of the last 18 months. Demand has been higher than usual (and it was already high to begin with), and inventory of land available for sale has been lower than usual because a lot of landowners who would sell and 1031 into something else can't find anything close enough to "priced right" to justify selling in the first place. Same reason housing prices shot up, extreme demand but a lot of folks couldn't justify selling at a high price if they were just going to need to find a new place to live and also have to pay a high price. Housing market has gone down a lot, but in the southern Iowa land market, contrary to the thread title, it *has* "slowed down", but the market is still tilted way in favor of sellers. There is still plenty enough demand and little enough supply of land available that I don't think we're close yet to things flipping in favor of buyers or people being able to easily find a "deal". Will more interest rate hikes finally change things? Hard to say. Next 6-18 months will be interesting for sure.
 
I'm far from an expert but one other difference I see is a lot of "family" owned ground that no one in the family continued farming. There is a lot more of that than in the 80s. That is all rented ground now, which rent prices should adjust with the market if crop prices decrease (assuming you aren't locked into a long term lease).

Sent from my SM-G973U1 using Tapatalk
 
tall@wide said:
I think that is for some type of tax reason. I've noticed a lot of wealthy landowners put farms in their wives' names.
Click to expand...
I think it's more to do with demographics.

57% of all those ages 65 and older are female. By age 85, 67% are women. The average lifespan is about 5 years longer for women than men in the U.S., and about 7 years longer worldwide.
 
IowaBowHunter1983 said:
I think it's more to do with demographics.

57% of all those ages 65 and older are female. By age 85, 67% are women. The average lifespan is about 5 years longer for women than men in the U.S., and about 7 years longer worldwide.
Click to expand...
Definitely makes sense. I do think for tax reasons, or 1031 exchanges wives are used some.
 
A class A+ 40 ac piece is coming up for auction several miles from us. I just saw the listing, including its 42 pg wind lease with a company trying to get permitted. That may attract buyers but in our case we will probably keep our hand down because of it. Can't stand the wind farms. Farms in this area have been going 15-20K the past year.
 
  • Deleted by Sligh1
Show…
You must log in or register to reply here.
Top Bottom