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Land Value Question

I have to imagine some variables come into play on this question. Location, soil quality, barriers, size, etc. Gross corn revenues are down 50%+ from the peaks. I suspect if rents are not down significantly yet they will be soon.
 
My family farms in Carroll County. Rate all depends on quality of land. There is some that rents for $175/acre all the way to $500+
 
Hoffman said:
My family farms in Carroll County. Rate all depends on quality of land. There is some that rents for $175/acre all the way to $500+
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500+ an acre??? Never heard of such.

180, look at what your CSR2 rating is then look at county wide averages. Depending on size of parcel and what row crop rotations its been in over past couple years will also play into affect.
 
You could check out dollarsanddirt.com or dreamdirt.com they break it into zones. Not sure what is out for 2015. Think the 2014 average in that area was in the 288$ range. Also they are talking around a 4% drop. Lots of variables. Some still pay in big money for easy access good tillable. Still selling in the 6-9k range.
 
Oct-Lull said:
You could check out dollarsanddirt.com or dreamdirt.com they break it into zones. Not sure what is out for 2015. Think the 2014 average in that area was in the 288$ range. Also they are talking around a 4% drop. Lots of variables. Some still pay in big money for easy access good tillable. Still selling in the 6-9k range.
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This has been one of those 1+1= does not equal 2 things. Corn drops about 50% and people still are paying 90% of what they were previously paying. I find this very interesting. Is there a farm bubble? Perhaps. There have been many articles written on the subject. It will be interesting to watch the next 5+ years.
 
There were farms renting in the $500 range when corn was high. If anyone is still doing that they will be broke soon. 2014 rents aren't really relevant either, as a lot has changed since those rents were locked in. Obviously a lot of variables involved, but if you can get low $200s id say you are doing pretty good.
 
It doesn't pencil but guys still do it. Some still have cash from when corn was high. But that has to be dwindling for most. Interest is low so some would rather pay more for the land than in interest. Proximity is big also, if its close you will most likely pay more to have it. Land prices and inputs change way slower than the price at the mill. There are still lots paying over 250$ today. We are not that far removed from some big money that was made.
 
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