"Value of SD Land Rising"

Land is going high around here where I live in Indiana too. Poor ground that would be good for pasture and nothing else starts at $4,000 and goes up to $7,000 for good farm ground. Read this in an article of the farm paper that I get. The paper I get is called The Farmers Exchange it's a publication out of Goshen,IN..
 
The EWG site is misleading IMO. Some of those benefits are for conservation practices that benefit not only us as hunters but water quality, productivity of the land, and more.

There are more large family farms there than corporations as well. Yes they may be incorporated, but it's not some far off conglomerate that owns them, it's a local family in most cases. This gets extended as farmers age, divorce, have kids etc. so some of them have a lot of hands dipping into the pie.

I really don't see this issue as being any different than what IMO are more serious and costly (to us as taxpaying citizens) corporation abuses. Did you know that Verizon, Boeing, E-bay, General Electric--and dozens of other corporations paid more to their CEO's than they paid in taxes? Or that GE paid no--zero--income tax last year while pulling in a 3.2 BILLION dollar benefit from Uncle Sam?

Farming or business, there are legitimate reasons to assist them with government support or tax law and there are loopholes and those that take advantage of them. There's a thriving market for lawyers and accountants to navigate it all.

What we need to do is do a better job of insuring that abuses don't occur, that loopholes are closed, so that those that are abusing the system can't do so anymore.
 
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"The EWG site is misleading IMO. Some of those benefits are for conservation practices that benefit not only us as hunters but water quality, productivity of the land, and more."

How is farm subsides tied to conservation practices? CRP or other conservation programs have no connection.

I don't understand how the data is misleading.
 
onpoint said:
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"The EWG site is misleading IMO. Some of those benefits are for conservation practices that benefit not only us as hunters but water quality, productivity of the land, and more."

How is farm subsides tied to conservation practices? CRP or other conservation programs have no connection.

I don't understand how the data is misleading.
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It is misleading in that the total listed for any oeration is the total of all payments, conservation,crop and livestock.

If you look there are very few that are just CRP and if it is a reporting year that new CRP is installed the the total will be way up because it includes the copay and any incentive payments and they are a one time thing.

Another thing most peole don't take into account is that the contract will call out for PEST controll and it means weeds or anything else that detracts from the planting and the operator has to pay this out of pocket.

Yes the goverment makes a yearly payment but a lot more money can be made renting land to a farmer and let him foot all the bills for things like weed control, I think my having 140 acres or so of CRP costs me alot per year in lost revenue, the FSA pays me an average of$85 an acre an I have the upkeep costs and I could lease it to the local farmer for $120 an acre with no costs to me so you do the math----but my wildlife habatits worth it.

So next time someone tells you that landowners are geting rich off the farm program on CRP--maybe not so much, and I won't even start on the paperwork headaches I get.:cheers:
 
Land Auction

The title of this thread is "The value of SD Land"--I guess I will find out of the 7th of Oct as the quater section(160 acres) accross the fence from us goes up for sale by auction, so here is your chance to own your SD hunting spot. My guess is it will go for $3000 an acre or more.;)
 
tmrichardson said:
The EWG site is misleading IMO. Some of those benefits are for conservation practices that benefit not only us as hunters but water quality, productivity of the land, and more.
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Excellent point CRP payments are included in the EWG number.
 
South Dakota Land Values Booming

That was the title in the lastest arcticle from Agweek on Sept. 16, 2011.

Here are some highlight stats from the report. Data comes from SDSU survey:

16.5% increase in 2010/11. The 3rd largest jump in history since tracking began.

However, cash rents to land value ration were lowest in 21 years.

Statewide average cash rental rates increases $12.25/acre.

From 2001-2008 SD land increased at least 10% per year and in 2 years increased over 20%.

No respondents on the survey expected land to decline in the next 12 months.
 
SDJIM said:
The title of this thread is "The value of SD Land"--I guess I will find out of the 7th of Oct as the quater section(160 acres) accross the fence from us goes up for sale by auction, so here is your chance to own your SD hunting spot. My guess is it will go for $3000 an acre or more.;)
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Jim, What did the final gavel drop bring?
 
The final bid was for ---drum roll----$3850.00 per acre---good grief that's 616000.00 for a quarter of land---makes our 976 acres look good, of course its the same old story --land rich cash poor:D:D
 
Bob said:
West River -Lyman County, South Dakota reported recent land sale for 160 acres was $2050/acre. This was also reportedly purchased by a local farmer. Ten years ago this land would have probably done well to have brung $700/acre. The farmers in this area are pretty sharp and what they can farm they will and what needs to be made into wildlife habitat I would bet they see that it is done.
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Bob, I hunted across from that quarter earlier this year. What you had going on there, was like the Iowa ground for $16,255.00 per a. Two neighbors that wanted the adjoining land between them and willing to pay a premium to get it.

The problem with things like that is that it establishes the bar higher for the next buyer.

.
 
Glad to hear that the ground is going up...sounds like my Grandmother's ground will be coming up forsale sometime soon. Wish I had the money to buy it all and turn it to CRP or open a hunting lodge...it would be AWESOME!!!
 
I have no idea what an acre of good crop land goes for in SD, but I talked with a farmer friend of mine who had just gotten back from a farm land auction. Would you believe it went for $10k an acre !!!!
 
I just heard of land in the north central part of the state renting for $140 / acre. That is going to make it tough to sell CRP.
 
Fred74 said:
Heard on the radio today(12/8/11), some land in sioux county Iowa sold for 20k an acre !
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Not good! Those high land prices will and are passed on to consumers. Also when those goods being consumed are food. People suffer far worse then if it was something you had the choice to live without.

In Northern Minnesota, stumpage was going for $80.00 to $100.00 a cord. Everybody wondered how long such prices could last. Plywood was selling for super cheap at the time. The results of such high costs reared it's ugly head in the form of closures of numerous board plants. Plants that have and will never open again. This cost rural Minnesota communities/families big time. Some have and will never recover with those good paying job/benefit loss.

The same thing could happen to these farms which have payed prices for land that can't produce enough revenue to pay the payment. When food keeps going up in cost for the consumer. The consumer will have no choice but to cut back, decreasing demand.

I just called on stumpage prices a few weeks ago. They were brings around $18.00 a cord for Aspen and as low as $12.00 a cord for Balsam. A far cry from those record prices of a few years ago. They are cutting more timber this year then I have ever seen in my life. Where all this timber is going in this low demand supposedly slow economy. I have no idea. It is piles up like no tomorrow in places that use it. Something don't add up.
 
onpoint said:
Not good! Those high land prices will and are passed on to consumers. Also when those goods being consumed are food. People suffer far worse then if it was something you had the choice to live without.

In Northern Minnesota, stumpage was going for $80.00 to $100.00 a cord. Everybody wondered how long such prices could last. Plywood was selling for super cheap at the time. The results of such high costs reared it's ugly head in the form of closures of numerous board plants. Plants that have and will never open again. This cost rural Minnesota communities/families big time. Some have and will never recover with those good paying job/benefit loss.

The same thing could happen to these farms which have payed prices for land that can't produce enough revenue to pay the payment. When food keeps going up in cost for the consumer. The consumer will have no choice but to cut back, decreasing demand.
Old adage about fools and money, comes to mind. Two things I think of, first I hope no lender is crazy enough to lend money at priices like that or even a fourth of that. also the plywood is undoubtedly going to japan to rebuild the Tsunami, or Iraq to rebuild the damage we helped do, just like our cement premix.It may not be cost effective, or make sense, but we do it anyway, because somebody is profiteering and spending money on politicians.
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I hope we all know that in farming the farm doesn't set the price the grain is sold at. Just because you buy an expensive piece of land doesn't mean you can raise the price you get for the commodity you are producing. You are at the mercy of the market and will get what the market bears. Farmer are making very good money right now, but it isn't enough to make 10K - 20K work for land cost. I think OldandNew can back me up on this, NO BANK is borrowing money to people to buy 10K-20K an acre farmland. The people that are buying that are people who have the money. Trust me 20K land does not cash flow by itself. 20K an acre will not make any money farming it. That is a long term investment, banking on the price of land will not colapse.
 
Fred74 said:
Heard on the radio today(12/8/11), some land in sioux county Iowa sold for 20k an acre !
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Hard to discern fair market value without more info. How many acres, land use, location, zoning, etc.

Ag Land around the Twin Cities was selling for $20,000/acre back when the housing sprawl was going on but that slowed down real quick. With all the home inventory on the market it shut down land developers.
 
UGUIDE said:
Hard to discern fair market value without more info. How many acres, land use, location, zoning, etc.

Ag Land around the Twin Cities was selling for $20,000/acre back when the housing sprawl was going on but that slowed down real quick. With all the home inventory on the market it shut down land developers.
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As I understand it it was only 74 acres, which is still a lot of money but if it is right next to you and you think the farm is going to be in operation for another generation.
 
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