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Land prices / insane!!!

Hardwood11 said:
I know there are guys flying in to see properties in Iowa & Missouri so the hot market is not over yet !

However, I’ve seen some rougher farms, steep tillable ground, like an old pasture mix, sitting on the market and not getting offers .
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Similarly, the farms that I know of that are "sitting" have weird boundary issues and/or potential neighbor issues. I can't think of a "good one" that has sat for any length of time...including some that I would see as "borderline". The higher interest rates certainly appear to be limiting the pool of buyers that are financing the ground. However, interest rates just don't matter to cash buyers.
 
Daver said:
Similarly, the farms that I know of that are "sitting" have weird boundary issues and/or potential neighbor issues. I can't think of a "good one" that has sat for any length of time...including some that I would see as "borderline". The higher interest rates certainly appear to be limiting the pool of buyers that are financing the ground. However, interest rates just don't matter to cash buyers.
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I think the number one reason people sell farms in Southern Iowa (other places in the Midwest as well) are neighbor issues. When I buy a new farm, I try to look at the worst-case scenarios that I think are possible on adjoining properties. It's amazing how often worst-case scenarios actually happen. Also new buyers will investigate neighbors thru word-of-mouth and actual phone calls. If a property has neighbor issues already, potential buyers will find out before in most cases. Definitely could explain why some properties are not selling.
Common neighbor and other issues I have seen are:
1. Not like minded on the bucks they harvest
2. If you have a trailer or house next to a potential farm, plan on trespassing, constant dog barking, and that they will be shooting guns all the time.
3. Old abandoned county roads that run by/thru a potential farm could be re-opened.
4. Fields that border a county road will be used by poachers.
5. If a neighboring farm leases the hunting rights to someone, plan on that changing and brown its down hunters will lease, or worst yet outfitters.
6. Any easements that are not used currently will be used in the future.
7. Cattle on an adjacent farm will escape several times per year and eat your ag and food plots. The same property with cows will require you to rebuild and fix bordering fences soon after you buy.
8. The list goes on, but these are a few I have seen over the years.
 
Almost all of those points are normal issues. Not sure where one could buy a piece of property and not have those problems, except non land owners. Lol
 
THIS is gonna make a dent in land prices. Not “collapse” but absolutely will soften the longer this continues. Remember - corn was what: $7??? Beans got like $15-17??? This is a big difference & trend. IMG_8625.jpeg
 
I don't have skin in the game but I don't see any softening of rec ground happening any time soon. Higher interest rates slowed down people who needed to finance but there are lots of cash buyers and plenty who are still fine financing. I don't see a major correction happening to rec ground unless Iowa's deer heard gets decimated for whatever reason.
 
Windlooker said:
Not rec ground. Most out of state rec ground buyers don’t give two hoots about grain prices one way or the other. Some do but most don’t. They’re not buying for crop production or rental. If they can make a few bucks great but they don’t care.
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Oh- I agree it’ll have minimal impact on rec. But ag ground- it’ll slide.
Ag ground will directly reflect commodity prices & profitability. Rec ground will directly reflect the overall economy. 2 totally different things. WHEN we have a recession - u will see rec retreat some.
 
Sligh1 said:
Oh- I agree it’ll have minimal impact on rec. But ag ground- it’ll slide.
Ag ground will directly reflect commodity prices & profitability. Rec ground will directly reflect the overall economy. 2 totally different things. WHEN we have a recession - u will see rec retreat some.
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Without a doubt, all boats will rise and fall with the tide. Maybe not to the same degree but will have an impact.
daniel93077 said:
Land is typically a non-correlated asset to the stock market
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I was thinking this when daniel93077 said this. If you get into a 70s style bear market, you'll see how correlated REC land and the stock market really is. When guys on here say that REC will never see the $4000s again...people forget.
 
I don't watch his show often, but the way he talked once or twice this past season, he may be interested in buying it back.
 
northcedar said:
I don't watch his show often, but the way he talked once or twice this past season, he may be interested in buying it back.
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yeah I have been following his new channel. Im pretty surprised with his new farm and its size etc that he hasn't had bigger/more deer on it. Never would have guessed that based off of just looking at all the cover, surrounding area etc. Many of his hunts this past fall was literally seeing nothing and not much for bucks on trail cam for a couple years now.
 
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