Land prices.

This one is hard to believe. These record prices I've been hearing about come mainly from Amish/ Mennonite community near me. A buddy called me and told me this one last night. He owns his home place that is within the expanding area of above community. Old farmer neighbor of his owned 100 acers of nice prime farm ground. Some folks from above community had been trying to buy it for years. Finaly got the job done last week. Three families pitched in and offered him 53 K an acer for it. Needless to say, he took it. My buddy said he doesn't want to sell out but daaaaam!!!
 
birddude said:
This one is hard to believe. These record prices I've been hearing about come mainly from Amish/ Mennonite community near me. A buddy called me and told me this one last night. He owns his home place that is within the expanding area of above community. Old farmer neighbor of his owned 100 acers of nice prime farm ground. Some folks from above community had been trying to buy it for years. Finaly got the job done last week. Three families pitched in and offered him 53 K an acer for it. Needless to say, he took it. My buddy said he doesn't want to sell out but daaaaam!!!
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That furniture and jellies must be doing well.
 
I made a big mistake about 3 years ago, my buddy wanted to sell me 80 acres of rough ground that was once farmed. It was enrolled in CRP and NE Open Fields and Waters which generated enough to pay the taxes with some left over and he wanted $50K. I didn't have liquid cash since I wasn't retired yet and the bank wanted 8% interest.
He sold it 1.5 years ago for $65k. Same ground sold last week to a person from out of state for $235k. It's poor ground, no water and too small for hunting. I don't know what they are going through to do with it!
But on the positive side for us, our small get-a-way cabin we bought for $55k is now worth about $300k. The downside is we now live here full time and if we sold we'd have to buy some other over priced place to live.
 
airmedic1 said:
I made a big mistake about 3 years ago, my buddy wanted to sell me 80 acres of rough ground that was once farmed. It was enrolled in CRP and NE Open Fields and Waters which generated enough to pay the taxes with some left over and he wanted $50K. I didn't have liquid cash since I wasn't retired yet and the bank wanted 8% interest.
He sold it 1.5 years ago for $65k. Same ground sold last week to a person from out of state for $235k. It's poor ground, no water and too small for hunting. I don't know what they are going through to do with it!
But on the positive side for us, our small get-a-way cabin we bought for $55k is now worth about $300k. The downside is we now live here full time and if we sold we'd have to buy some other over priced place to live.
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80 acres isn’t too small. Know lots of guys who buy their 40 for hunting. Any slough or trees or just 80 acres of crp? Regardless I would have hopped on that in an heartbeat and made it work me thinks. If anything an investment. Not making more of it. Less than a new truck.
 
Son in law family has 76 acres that he has taken some wonderful bucks off of. Do a bit of goose hunting when they take the crops off. Land all around it is own by a large corporation. Has a nice little creek running through it. Company that owns the land around it has offered 650,000 for it they countered with 1.25 million. Needless to say we still get to hunt and shoot on it. Across the road from me they are developing into lots, farmer has 75 acres up for sale 1.5 million I see the for sale sign is down word is that it's sold.
 
birddude said:
This one is hard to believe. These record prices I've been hearing about come mainly from Amish/ Mennonite community near me. A buddy called me and told me this one last night. He owns his home place that is within the expanding area of above community. Old farmer neighbor of his owned 100 acers of nice prime farm ground. Some folks from above community had been trying to buy it for years. Finaly got the job done last week. Three families pitched in and offered him 53 K an acer for it. Needless to say, he took it. My buddy said he doesn't want to sell out but daaaaam!!!
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It's probably old coal money. From the 70's until the war on coal, coal mines were prevalent in their area. Rumor used to be that the town (800 people) contained the most multi-millionaires per capita in the state.
 
birddude said:
It's probably old coal money. From the 70's until the war on coal, coal mines were prevalent in their area. Rumor used to be that the town (800 people) contained the most multi-millionaires per capita in the state.
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The town we sell most of our cattle in has a large population of Amish/Mennonite around and I love when you see a bunch of them show up to buy $$
 
I've got an 80 ac parcel in E. Central WI. The neighbor just offered $15k/acre unsolicited. It the north side of a steep moraine (2nd highest pint in the county by a couple of feet). Not great farm ground but is a good toboggan hill!
 
remy3424 said:
So would the use for that ground be development, farming or hunting?
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Farming. The neighbor is a large dairy operation. He's been leasing that parcel for 50+ years from my dad and now me. I don't know how that economics of that would work for him. Corn yields are about 150 bushel/ac. But I guess he doesn't need fertilizer because has has all the cow shit he could ever want! They pipe it through fire hoses all over the area to land he leases and owns.
 
birddude said:
This one is hard to believe. These record prices I've been hearing about come mainly from Amish/ Mennonite community near me. A buddy called me and told me this one last night. He owns his home place that is within the expanding area of above community. Old farmer neighbor of his owned 100 acers of nice prime farm ground. Some folks from above community had been trying to buy it for years. Finaly got the job done last week. Three families pitched in and offered him 53 K an acer for it. Needless to say, he took it. My buddy said he doesn't want to sell out but daaaaam!!!
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Well, my friend gave in. Him and his wife had tears in their eyes when they told me. Amish neighbor offered him 25 K an acer. He sold everything but the home place house. Can't blame him.
 
GetTothePoint said:
It's a scary situation, watch and see what happens to this already depleted cattle herd. We're going to see record prices for the animal that is costing them a fortune to pasture and feed right now. These guys won't be able to load their trailers to head to town fast enough. When you can now eat shrimp in Kansas cheaper than beef this isn't working.
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Are you from KS GetTothePoint?
 
birddude said:
Well, my friend gave in. Him and his wife had tears in their eyes when they told me. Amish neighbor offered him 25 K an acer. He sold everything but the home place house. Can't blame him.
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I hate it but I guess I'm glad it's them and not a developer or solar or something of that nature. I have farmed and ranched my whole life and now work in the AG sector as well. 25K per doesn't work I don't care where you are. I've sat here a moment and tried to find the words to describe the mess of situation we're in and I can't. I have a teenager that I thought one day might try to stay here and carry on but now days I don't know what to tell her. Some days selling out and holding the sand down on a beach somewhere instead of fighting the insanity sounds pretty good.
 
There is ground in our immediate area that just re-rented this yr for 165/ac. The farmer that retained it had been paying 140 the last several years on it and had been admittedly losing every year at 140. His rebuttal when I asked what the hell he was thinking was "ill never get it back if I lose it." He's probably right but it's just a microcosm of the mess we're in. A guy needs to be at 80 or under in our area to even sniff a profit, a lot of these guys are losing money just to turn a tractor on in the morning right now
 
GetTothePoint said:
Yessir
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I'm gonna guess somewhere near Hutch w the Amish comment - ?? Or the general area? I grew up rural SG and Butler county and then lived near Garden after college a bit and now live NE KS -- I bought land here 3 yrs ago and am blown away what it's going for here - I want to buy more here since I live here now or Ford Co, Edwards, Pawnee or parts west.
****
My best guess for the land going up so much is due to inflation - It's probably bound to go up more if the US keeps printing money non stop -- Could probably graph this the same way you could graph a barrel of oil to dollars and yes it's went up but if you convert it back to oil to gold - or in this instance - compare gold to the price per acre - ratios probably stayed the same as it was 60 yrs ago -- just an educated guess without doing the graphing. I understand the economics but am horrible at explaining it. Land IMO for the most part can be part of a wealth preservation strategy.
 
GetTothePoint said:
There is ground in our immediate area that just re-rented this yr for 165/ac. The farmer that retained it had been paying 140 the last several years on it and had been admittedly losing every year at 140. His rebuttal when I asked what the hell he was thinking was "ill never get it back if I lose it." He's probably right but it's just a microcosm of the mess we're in. A guy needs to be at 80 or under in our area to even sniff a profit, a lot of these guys are losing money just to turn a tractor on in the morning right now
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If I could rent land for $140/acre I'd move back home and farm. Our ground currently goes for $225-$275/acre.
 
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