deerdown
Well-Known Member
Prices softening as expected?
Wow Just Wow....... Land Prices
- Thread starter Trapshooter1
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jflournoy
Active Member
I'm in Lucas County and I thought something in the high 4's to maybe 5 would be what this one went for per acre. I was very surprised to learn $7,100/acre. I was told it was purchased by someone wealthy who already had a massive hunting landholding very nearby, and was bidding against an Amish buyer, as that land is on the north side of the Amish community on the south side of Chariton. So they bid the price up till someone said uncle.
Good fortune by seller
jflournoy
Active Member
Absolutely right on that one!
tall@wide
PMA Member
One of the things I did in Illinois was to buy land near large, wealthy landowners. The large landowner will eventually want your farm or it will raise the price for other buyers wanting to be next to a large highly managed piece. You get top $ when selling.
deerdown
Well-Known Member
The squeeze is on.......
My tenant who farms 4000a in Northern Mo call me yesterday wanting to know if I was still in the market for a SS. He's selling his to shed some debt and tighten his belt due to last years losses and what 2025 looks like.
I'm really struggling to understand his comment that he lost money last year when he had his best ever yields. I guess it depends on how you determine your loss. i.e. If you paid down 200k in debt, but your bank account balance is $50k less, did you lose money? Some would say yes..... Not sure that's his situation but don't understand how you lose money with record farm yields....
There's a nearby land auction coming up in Nov. I'll be very curious what it brings. It's bottom ground for the most part.
Recently bottom ground in the area would bring $9-10k/a. I'm curious if it comes close to that.
My tenant who farms 4000a in Northern Mo call me yesterday wanting to know if I was still in the market for a SS. He's selling his to shed some debt and tighten his belt due to last years losses and what 2025 looks like.
I'm really struggling to understand his comment that he lost money last year when he had his best ever yields. I guess it depends on how you determine your loss. i.e. If you paid down 200k in debt, but your bank account balance is $50k less, did you lose money? Some would say yes..... Not sure that's his situation but don't understand how you lose money with record farm yields....
There's a nearby land auction coming up in Nov. I'll be very curious what it brings. It's bottom ground for the most part.
Recently bottom ground in the area would bring $9-10k/a. I'm curious if it comes close to that.
Ss?
Hardwood11
It is going to be a good fall!
Ask him if he will sell you some of his land!
Thinkin Rut
PMA Member
It will be interesting to see what lower interest rates combined with Trump’s win will do with the softer land prices. I’d guess a soft landing for the economy also. I still can’t see land busting new ground on prices but getting back up there and hold might be a good guess. How you think things may turn out seems to always throw you a curve.
IMHO- rec & combo land will stay steady or maybe tick up. This is due to rec land tied to economy.
I do believe Ag land is going to soften a good bit more. It’s not tied to economy but to commodity, input costs, interest, etc. & in all likelihood, commodities might even soften some more with Trump in. As it sat before & after election…. This AG land is softening a good bit. Will continue IMO.
For the guys on here looking to buy rec land - if u able & ready- I’d actually buy it sooner than later. If rates get cut & economy does heat up- it’s gonna go UP in price.
I do believe Ag land is going to soften a good bit more. It’s not tied to economy but to commodity, input costs, interest, etc. & in all likelihood, commodities might even soften some more with Trump in. As it sat before & after election…. This AG land is softening a good bit. Will continue IMO.
For the guys on here looking to buy rec land - if u able & ready- I’d actually buy it sooner than later. If rates get cut & economy does heat up- it’s gonna go UP in price.
letemgrow
PMA Member
What's the inputs per acre now?
High yield prices are not always a boon for the farmer since the price for all the other moving parts aren't steady.
hesseu
Well-Known Member
I'm curious on the rec / combo over the next 12 months. Just my observations...folks who picked up vacation homes and STR's a few years ago are now having the ARM's come due. I would imagine this may be the same for rec land. I think this direction of interest rates are going to dictate a lot. I mean, looking at 8% today on ARM's which is double or more of what it was 4 years ago. I think we might see some folks actually sell, or try to sell, real estate and put that $ back into the stock market and private equity funds that are invested into holding businesses.
Why would anyone have chosen an ARM when rates were 2.5% or lower? Or are there instances where fixed rate is not offered?
ARM rates arnt 8%..
hesseu
Well-Known Member
You're right, most are 6.25-7% with different factors involved. Some of the bigger banks are at 8%.
hesseu
Well-Known Member
ARM's in 2021 were getting down to 2.6% and investors used these rates. For the "everyday" buyer, they did use 15, 20, and 30 year fixed....But RE investors a lot of times will not used fixed. Look in areas where vacation homes were purchased in 2020-2022...A LOT is starting to hit the market.
I hope so, I'm looking for lakefront acreage in MN
hesseu
Well-Known Member
I hope so for you!