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dedgeez

dedgeez

death from above
So I was driving to work this morning listening to the news and heard a bit of info that was shocking to me (kinda).

They said that the IRA(Iowa Realtors Assoc) recently completed a survey of average land prices over the last year. They found that land has increased in price by an average of 30-35% over the last year :eek:

The average price for "Medium" quality farm ground in Iowa is now $6500.00 dollars per acre. Holy expletive......

I'm sure most of you already know this, but figured I would share with the rest of you. There is no way this is sustainable, and if it persists, the dream of owning hunting ground is a pipe dream for most. Pretty interesting to say the least.
 
I don't think rec ground(hunting ground) is what the IRA is talking about. Can still get good rec land for a decent price.
 
That survey must be from north of I-80. There was an 80 of pretty rough ground sold a while back for 1250/acre in south davis county.
 
Jdubs said:
I don't think rec ground(hunting ground) is what the IRA is talking about. Can still get good rec land for a decent price.
Click to expand...

You're right. This was concerning "crop" ground. BUT, Farmers aren't just buying land that is 100% tillable. Most farms here(NE Iowa) are 50-50 or 60-40 etc.. tillable to timber. A farm near one of my hunting spots, sold last week for 750,000.00 and was 142 acres and it is mostly timber. My bet is if you are savvy enough you could work out a deal with the new landowner to purchase or have access to the timber portion of the land. On the report one of the guys that was interviewed (not sure of his affiliation) said he was very concerned at the possible outcome of this if crop prices were to drop. What I have seen here is the people that are buying are paying cash or leveraging against land that is already payed for. The guys that are doing that should have nothing to worry about.

I don't mean to sound all gloom and doom. There will still be opportunities, they will just be harder to come by for the average Joe.
 
blakesburg said:
That survey must be from north of I-80. There was an 80 of pretty rough ground sold a while back for 1250/acre in south davis county.
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It was an average from the whole state. I agree that there are some parts of the state where land is "affordable", but certainly up this way, you better be somewhat successful to be even thinking about purchasing. But, this is Gods Country. :D
 
Wow, that is a pile of cash for land. If the people are not loaning too much that are buying that ground, they should be in good shape no matter the economy.

Cash is king, especially when it comes to buying land...then one farm can pay for another and so on. Just wish my 401K was about 401 acres :D
 
blakesburg said:
That survey must be from north of I-80. There was an 80 of pretty rough ground sold a while back for 1250/acre in south davis county.
Click to expand...

sure might be the case, but I'd bet that same "rough ground" wasn't worth $500 an acre 15 years ago...just sayin

ded, you're right...for most, owning hunting land is totally a pipe dream...and these current prices are not sustainable
 
Give it 5 more years, the entire market is going to crash, crop prices, land prices, And the gov. will be out of money to bail out the farmers that just baught millions of dollars worth of new equipment, Its going to be a real mess, but it just may make that pipe dream come true for some.
 
some some real nice "high quality" sandy field ground for sale about 2 miles from my house for $7300/acre... can't imagine what the stuff that actually has dirt in it is worth
 
Not too far from Des Moines has some tremendous hunting land, I can think of half a dozen 40's that are between $1,500 to $2,000 per acre that have great hunting and some income. Let's say you bought one for $70,000 ($1750/acre & I KNOW there's plenty that can be bought for that if you go to several areas in state, several I know are cheaper) & you got $2,000 worth of income off farm per year, that's really not to shabby & for sure do-able for a lot of folks if they wanted to really go after it. Just a thought.


***$70,000 farm with $20,000 down (yes, I believe if disciplined most folks COULD do this if they put their mind & budget to it)= $50,000 @ 5.5% interest over 25 years (very common)= $3,685 annual payment. You'd have more income if you did projects BUT let's say you had $2,000 in income = $1,685. Taxes almost a non-issue. $1,685 per YEAR for a 40 acre chunk. If you REALLY didn't have $1,685, I could write 30 paragraphs.... Get an extra gig for 1 night a week for a while, sell a hunt, sell some timber, do some more TSI, etc, etc, etc. I personally think it's do-able.
 
I completely agree Skip, problem is finding that 40 that is worth owning for that price. A "good" 40 here would be 150k plus. If it had any good tillable it would be more like 250k. Not many dudes around that can pick up a 2nd gig and be able to afford that. Like I said, there will still be opportunities, but one is going to have to do some leg work to find it.
 
Neat 39 acre piece right here - just looked for 60 seconds, NO IDEA if it's any good or who's ground it is?!?!....
http://www.hawkeye-re.com/albia/searchrli.htm 39 acres with ASKING of 83k, 55% timber, 45% open/tillable.
Yeah, thankfully we don't have NE IA prices round here!!!! Whoa, you guys are in outter space with your prices, I agree. Most places round here, an average Joe can still afford thankfully.
 
Granted this is from 07 and I'm sure things have changed night and day since then. Interesting info anyway.








Farm Characteristics

1997, 2002 and 2007 Census of Agriculture 1997 2002 2007 Approximate total land area (acres) 35,759,932 35,756,387 35,747,594 Total farmland (acres) 32,313,119 31,729,490 30,747,550 Percent of total land area 90.4 88.7 86.0 Cropland (acres) 27,713,041 27,153,291 26,316,332 Percent of total farmland 85.8 85.6 85.6 Percent in pasture 7.5 5.0 3.2 Percent irrigated 0.5 0.5 0.7 Harvested Cropland (acres) 24,008,826 23,994,343 23,799,380 Woodland (acres) 1,406,516 1,336,752 1,193,303 Percent of total farmland 4.4 4.2 3.9 Percent in pasture 47.2 41.1 33.5 Pastureland (acres) 1,524,668 1,735,421 1,914,924 Percent of total farmland 4.7 5.5 6.2 Land in house lots, ponds,
roads, wasteland, etc. (acres) 1,668,894 1,504,026 1,322,991 Percent of total farmland 5.2 4.7 4.3 Conservation practices Farmland in conservation or
wetlands reserve programs
(acres) 1,863,808 1,694,138 2,050,714 Average farm size (acres) 334 350 331 Farms by size (percent) 1 to 99 acres 31.1 35.0 41.2 100 to 499 acres 46.9 42.3 38.1 500 to 999 acres 15.6 14.4 12.7 1000 to 1,999 acres 5.5 6.9 6.4 2,000 or more acres 0.9 1.5 1.7 Farms by sales (percent) Less than $9,999 29.0 35.4 38.6 $10,000 to $49,999 23.4 21.5 15.3 $50,000 to $99,999 14.7 12.9 10.6 $100,000 to $499,999 28.7 25.0 25.4 More than $500,000 4.2 5.3 10.2 Tenure of farmers Full owner (farms) 47,132 49,889 53,492 Percent of total 48.7 55.0 57.6 Part owner (farms) 33,908 30,265 28,937 Percent of total 35.1 33.4 31.2 Tenant owner (farms) 15,665 10,501 10,427 Percent of total 16.2 11.6 11.2 Farm organization Individuals/family, sole
proprietorship (farms) 81,074 78,699 77,452 Percent of total 83.8 86.8 83.4 Family-held corporations
(farms) 5,913 4,900 6,029 Percent of total 6.1 5.4 6.5 Partnerships (farms) 8,688 5,792 6,990 Percent of total 9.0 6.4 7.5 Non-family corporations (farms) 426 379 480 Percent of total 0.4 0.4 0.5 Others - cooperative, estate or
trust, institutional, etc. (farms) 604 885 1,905 Percent of total 0.6 1.0 2.1 Characteristics of principal farm operators Average operator age (years) 52.3 54.3 56.1 Percent with farming as their
primary occupation 60.1 68.3 52.4 Men 91,604 84,451 84,404 Women 5,101 6,204 8,452
More information on farm characteristics
• Census of Agriculture
• Contact NASS Customer Service, 1-800-727-9540.

Farm Financial Indicators

Farm income and value added data 2009 2010 Number of farms 92,600 92,400 Thousands $ Final crop output 13,209,589 12,437,360 + Final animal output 8,371,496 10,192,855 + Services and forestry 2,432,959 1,993,021 = Final agricultural sector output 24,014,044 24,623,236 - Intermediate consumption outlays 14,157,179 14,282,651 + Net government transactions 66,400 276,290 = Gross value added 9,923,265 10,616,875 - Capital consumption 1,698,978 1,728,828 = Net value added 8,224,287 8,888,047 - Factor payments 3,456,189 3,805,923 Employee compensation (total hired labor) 593,024 583,066 Net rent received by nonoperator landlords 1,744,568 2,155,549 Real estate and nonreal estate interest 1,118,597 1,067,308 = Net farm income 4,768,099 5,082,124
 
dg, some land sold over in the Ossian- Spillville area for over 10 grand an acre recently. Greed is what makes capitalism work, but it can make things crazy. Worst part is when the half tillable, half timber farm gets bought by a farmer, with 7 dollar corn, it will be ALL tillable next year. Kinda scary thinking about my corn food plots. What I have in them for spray and fertilizer, and what I'm leaving out there in 7 dollar corn. Best not to think about it:D
 
turkeyriver said:
dg, some land sold over in the Ossian- Spillville area for over 10 grand an acre recently. Greed is what makes capitalism work, but it can make things crazy. Worst part is when the half tillable, half timber farm gets bought by a farmer, with 7 dollar corn, it will be ALL tillable next year. Kinda scary thinking about my corn food plots. What I have in them for spray and fertilizer, and what I'm leaving out there in 7 dollar corn. Best not to think about it:D
Click to expand...

yup I here ya. I'm thinking about having my bean plots harvested this year. I bet I could make a decent little income.

The info posted above has changed dramatically in the last 4 years and I feel is going to continue to get that way. There are still alot of farmers up this way that are conservation minded, but like you said, greed is a powerful thing and we'll see how long that lasts.

BTW, can I sit on your corn plot during late muzz? :drink2:
 
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