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Record Farm Auction

At this rate, by the time the stock market starts to out perform the return on ag real estate, the real estate will be paid off and profits will be able to be reinvested in the stock market. I'm in the market for a house, but I am not in a hurry to lock in an interest rate because no matter who wins this election, the US economy will still be in recession for at least a year until they are able to attempt their plans to revive it. As long as the economy is recessionary interest rates will remain low. We shall see. I wish we all had a crystal ball.
 
droptine37 said:
Also letemgrow your statement about paying with cash makes price irrelevant doesn't make sense to me. Are you saying there is no alternative that you could Put the cash to use that will make you money?
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I was meaning if someone wanted land and not just strictly from an investment standpoint. If its solely to make say a 5% return a year or something like that, then price matters.

I don't have the dough to get 156 acres for a million bucks...but would not hesitate to pull the trigger on something if it was land I really wanted and had enough cash sitting in the bank to get it.
 
To the point of the 300 bushel corn, my uncle was combining in the Emmetsburg area and he said the monitor went from 20, to 60, to 180, to 314 all in the same 12 rows for one length of the field. I'm not up on how accurate those monitors are, but if spots can get that yield in this summer, I feel like it can definitely happen to an entire area during a good corn growing summer.
 
Farms

A combination of three things will lower land prices: lower corn and soybean prices, higher interest rates, and investors dumping their farms in favor of a higher return on investment.

If all three happen, we will have lower farm land prices. Right now that does not seem to be the case, but three-five years from now???

The smart investors bought long before the run up in prices!:drink2:
 
Land

Although I am not a fan of buying 10,000 an acre farm, there are still deals in parts of Iowa for combination rec ground (tillable/crp/timber) that can be bought for 2000-2250 an acre or less.

That is still reasonable and probably not going to fluctuate much.

With the government borrowing so much money, land will be a nice place to park money if you have it, and if you don't bank...financing is cheap for what looks to be another 2-3 years.

Might still be a good time to buy if you can find a reasonably priced farm.
(Not referrring to $10,000-$15,000 an acre farm ground)
 
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