Almost no-one is paying cash for ground (very very few). It can be a great investment if smart about financing.
It depends on many factors. Having the bank pay for part of your land is not a bad option. I usually look for cash flow property where the income matches up with the interest.
Even on a small 200K loan for example, you will pay closing costs, and around $600-800 per month in interest alone( that doesn't even include the principal payment). So that farm better bring in a lot of income if you want to have a good investment. Even if a CRP or cash rent situation exists on the farm that pays for the interest payments, that means you are relying on land value increases to earn any income at all(timber logging could be another source of income). So as I mentioned in previous post, you better plan on keeping that farm for many years to come if financing, with land values so high right now.
....yes most farms have income. I think 99% of people that have financed land would say it was a good investment.
Yes, especially over the last 12 months land values have really gone up.
I would also say that even if a farm isn't a good financial investment, doesn't mean it isn't a good investment. If you consider all the good hunting trips, land usage in general, and taking family and friends for great hunts make for lifelong memories.
. Long term- a lot of variables that could change the values of farm land. Does anyone on here care or worry about values 20-40 years from now? Probably not- self included. It’s likely still an extremely good long term investment - even if we saw hybrids change the game or even a human population that actually DECLINED. Then u get into development potential in Midwest (hate it but folks think about it)- if a guy wanted to think in those terms- especially strong long term in growing areas IMO. .
I think that is correct on farm land. Overall the guy has the most land of any individual. John Malone (Liberty Media/Sirius XM)Bill Gates is now the #1 land owner in the US at close to 300,000 acres. And he's buying ALL farmland.
Scary to think they're in all "our" neighborhoods now.. Don't worry, we all own a tiny sliver of their companies and this land in our index funds!!
Not sure on those exact locations, but those are likely data center related. Facebook, Apple, Microsoft, and Google are all heavily invested into data centers in the metro. Iowa's investment into major fiber, cheap energy, and generous tax credits spurred those investments.I am seeing more titling like this around me. For higher end ag ground. Clearly not for “hunting land”.
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No doubt the out of state investments have been ramping up tillable ground much harder in last 12-18 months. There’s a limited supply of high end dirt …. When inflation hits, other investments aren’t ideal…. Many look to higher end tillable as a “safe bet”. Are they paying “too much” ? Sure. Does it matter to them? NOPE. Even if values cut in half- they don’t care. A lot of investment $ has hit the Midwest ag market…. A lot of other “big names” that put it in an LLC, Corp, trust, etc where u don’t realize who it is. It doesn’t mean these prices will stay high or these folks won’t lose on shorter term values BUT it does speak to the uniqueness & likely, safety, of long term investing in high end ag ground.
On other hand…. The “counter argument” to high end ag ground…. 1) With hybrids making leaps & bounds by the decade- we can grow more on marginal ground. Possibly increasing supply to the point where it puts down pressure on high end ag land prices. 2) “they aren’t making any more of it” - is not quite true unfortunately…. As humans doze out countless thousands or millions of acres of places like Brazilian rain forest- we are rapidly expanding the agricultural areas. Even the dozing you see in the Midwest when grain spikes- astounding. There will be some problems from it…. Droughts will be more prevalent when deforestation happens - no question. We are also ruining some marginal soil ecology & top soil at rapid pace. Maybe hybrids can keep up with this trend, dunno. Sorry on getting into the weeds here
Buy it if u can & can handle risk if/when it goes down. But be ready for a lot of dynamics & changes “no one saw coming” in the process. It’s likely a never ending CYCLE. Buy it, enjoy it and forget about the rest of the worlds issues if possible
If I own Microsoft and Apple stock...by proxy I am part owner in this ground. I should have full hunting rights to it all!!!I am seeing more titling like this around me. For higher end ag ground. Clearly not for “hunting land”.
View attachment 122084View attachment 122085View attachment 122086
No doubt the out of state investments have been ramping up tillable ground much harder in last 12-18 months. There’s a limited supply of high end dirt …. When inflation hits, other investments aren’t ideal…. Many look to higher end tillable as a “safe bet”. Are they paying “too much” ? Sure. Does it matter to them? NOPE. Even if values cut in half- they don’t care. A lot of investment $ has hit the Midwest ag market…. A lot of other “big names” that put it in an LLC, Corp, trust, etc where u don’t realize who it is. It doesn’t mean these prices will stay high or these folks won’t lose on shorter term values BUT it does speak to the uniqueness & likely, safety, of long term investing in high end ag ground.
On other hand…. The “counter argument” to high end ag ground…. 1) With hybrids making leaps & bounds by the decade- we can grow more on marginal ground. Possibly increasing supply to the point where it puts down pressure on high end ag land prices. 2) “they aren’t making any more of it” - is not quite true unfortunately…. As humans doze out countless thousands or millions of acres of places like Brazilian rain forest- we are rapidly expanding the agricultural areas. Even the dozing you see in the Midwest when grain spikes- astounding. There will be some problems from it…. Droughts will be more prevalent when deforestation happens - no question. We are also ruining some marginal soil ecology & top soil at rapid pace. Maybe hybrids can keep up with this trend, dunno. Sorry on getting into the weeds here
Buy it if u can & can handle risk if/when it goes down. But be ready for a lot of dynamics & changes “no one saw coming” in the process. It’s likely a never ending CYCLE. Buy it, enjoy it and forget about the rest of the worlds issues if possible
Was going to post similar. Those sites pictured above are all adjacent to four lane highways.
