Should I have been bidding?

moellermd

moellermd

Super Moderator
TRACT 2 SALE PRICE - $2,500 PER ACRE


According to the FSA there is 76.6 acres of cropland with a 29.1 acre corn base/86 bushel yield. Predominate soil s include Chancellor-Wakonda-Tetonka and Wentworth-Chancellor. Soil rating .784 The CRP contract is on 47.53 acres with an annual payment of $109.55 per acre received October of each year and runs through September 30, 2020. Taxes: 1888.28

The wet lands determination shows that 17.6 acres are wetlands.


This ground is in the general area of were I do most of my hunting. I could have probably got $150 for the rent on the crop ground.
 
moellermd said:
TRACT 2 SALE PRICE - $2,500 PER ACRE


According to the FSA there is 76.6 acres of cropland with a 29.1 acre corn base/86 bushel yield. Predominate soil s include Chancellor-Wakonda-Tetonka and Wentworth-Chancellor. Soil rating .784 The CRP contract is on 47.53 acres with an annual payment of $109.55 per acre received October of each year and runs through September 30, 2020. Taxes: 1888.28

The wet lands determination shows that 17.6 acres are wetlands.


This ground is in the general area of were I do most of my hunting. I could have probably got $150 for the rent on the crop ground.
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That sounds pretty interesting and $2500 per acre is probably in the ball park.
 
I should have clarified the $2500 is what it sold for at auction. I am wondering if or how hard I should be kicking myself.
 
Come November you are really going to regret not buying that land. 10K income on a 200K investment is 5%, that's better than you can get at the bank, plus appreciation. What were you thinking?:(
 
moellermd said:
I should have clarified the $2500 is what it sold for at auction. I am wondering if or how hard I should be kicking myself.
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Wind up and give yourself a big one in the a$$. They tell me my ground is worth that per acre and average county rent is $76/acre. With the wetland you could enroll the whole thing in CP-37. Those are good enough soils.

They say land prices are as flat as they have been for a while but more buyers are coming to market just for that 5% reason.

Is your hinder-stinker sore yet?
 
niceshot said:
Come November you are really going to regret not buying that land. 10K income on a 200K investment is 5%, that's better than you can get at the bank, plus appreciation. What were you thinking?:(
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You should talk. I told you about the deal and you passed.

UGUIDE thanks for helping me sleep better at night. :mad:
 
look at the money you saved by not bidding, then go to your favorite sporting goods store and buy some new toys. that way you dont feel guilty buying them. or better yet book a hunt to some far away place.
 
Of course the question remains, could you have gotten it bought if you would have bid? Just how high would the other bidder(s) have gone to get it. You just don't know.

I was just kidding. Don't beat yourself up over it.
 
M. R. Byrd said:
Of course the question remains, could you have gotten it bought if you would have bid? Just how high would the other bidder(s) have gone to get it. You just don't know.
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Very true. I would have cost more than 2500. How much who knows. The other thing to consider is what hurts worse. Kicking yourself for not buying it or removing your wifes foot from your butt for buyng it.
 
I hate to say it but Niceshot brings up an interesting point. If I can get a %5 return due to rent/crp payment and land increases in value 4% on average is that not a OK investment?
 
moellermd said:
I hate to say it but Niceshot brings up an interesting point. If I can get a %5 return due to rent/crp payment and land increases in value 4% on average is that not a OK investment?
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I cashed in all my 401K and IRA and paid the big penalties to buy my first pieces of land in 2001. I am so glad I did that and will never look back. It is hard to compare a stable 6% retrun with a instable 15% return. In other words, 15% on a risky platform can look about as good as a consistent 6% return.

IMO
 
UGUIDE said:
I cashed in all my 401K and IRA and paid the big penalties to buy my first pieces of land in 2001. I am so glad I did that and will never look back. It is hard to compare a stable 6% retrun with a instable 15% return. In other words, 15% on a risky platform can look about as good as a consistent 6% return.

IMO
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Besides that, how many pheasants did you shoot on your IRA and 401K investments? For me, the ROI is important but even more important is the PPPA (pheasant potential per acre). That's really the only measurements you need, after that its just "hang on and hope for the best".
 
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