"Value of SD Land Rising"

Why the land is being bought up by wealthy investors/Corp farming, is not because of the value of the land but what is raised on it. They know what is in the not so distant future. Food shortages and high profits. It will dwarf what we see in the oil business now. It's just the tip of the iceberg right now. $7.00 for 10lbs of potatoes, hamburger $5.00 a lb, milk $4.00 a gallon..etc..etc..etc. Welcome to unbridled capitalism and vanishing trade laws. This is whats driving land prices across America's farm country. Along with billions in free government monies to be had.
 
I live in probably the mecca of high farm land prices. It is not investors or "big Corp" farms buying the land it is family farmers. Last year a 80 sold for 15,000 an acre and the last two bidders were family farmers. The year before that a piece brought 10,000 bought by a local farmer.
 
bc, that was just a example from Arkansas. Just use the link and click on any state on the map to see who the top recipient's are from that state,. You can go all the way down to counties and look up people you know and see just what they are drawing for subsidies. I looked up one I know. They are collecting under 4 or 5 different company names. Their grandfather is collecting and hasn't even driven a tractor in 25 years or more and lives in town on a lot. He can't even drive any longer but is still collecting farm subsidies.
 
Here is South Dakota's top recipients
http://farm.ewg.org/

Subtotal, Farming Subsidies in South Dakota, 1995-2010
Subsidy Recipients 1 to 20 of 69,204

Recipients of Subtotal, Farming Subsidies from farms in South Dakota totaled $4,967,000,000 in from 1995-2010.
Rank Recipient
(* ownership information available) Location Subtotal, Farming Subsidies
1995-2010
1 River View Farms ∗ Platte, SD 57369 $5,551,611
2 Yackley Ranches ∗ Onida, SD 57564 $5,131,608
3 Lower Brule Farm Corp ∗ Fort Pierre, SD 57532 $4,698,027
4 Kenneth R Huse & Sons ∗ Onida, SD 57564 $4,500,188
5 Lnl Partnership ∗ Pierre, SD 57501 $4,226,004
6 Peterson Farms ∗ Hitchcock, SD 57348 $4,224,231
7 Mike Ogan Farms Partnership ∗ Pierre, SD 57501 $4,148,602
8 3 B Farm Ptn ∗ Gettysburg, SD 57442 $3,740,898
9 Locken Farms ∗ Bath, SD 57427 $3,693,285
10 Diamond Ring Farm ∗ Midland, SD 57552 $3,567,010
11 Berbos Farms ∗ Aberdeen, SD 57401 $3,439,954
12 Wittler Joint Venture ∗ Agar, SD 57520 $3,375,195
13 Kjerstad Farm Partnership ∗ Quinn, SD 57775 $3,352,053
14 Sylte Farms ∗ Ipswich, SD 57451 $2,673,692
15 Swenson Partnership ∗ Wessington Springs, SD 57382 $2,630,945
16 Mayclin Farms Partnership ∗ Plankinton, SD 57368 $2,600,955
17 Randall Ag Ventures ∗ Canistota, SD 57012 $2,574,561
18 Racota Valley Ranch ∗ Hazel, SD 57242 $2,568,797
19 Swenson Brothers ∗ Woonsocket, SD 57385 $2,508,882
20 Gracevale Hutterian Brethren Inc ∗ Winfred, SD 57076 $2,439,749

Note #10 Diamond Ring Farmer's is no longer it was shut down by the government and auctioned off.
 
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onpoint said:
Their grandfather is collecting and hasn't even driven a tractor in 25 years or more and lives in town on a lot. He can't even drive any longer but is still collecting farm subsidies.
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That is not illegal at all and is quite common. If you own land and farm it on shares with the farmer you can collect subsidies. There is no requirement to be doing the physical work to recieve the subsidie.

Interesting if you look at the top 4 recipients in SD with the exception of the reservation they appear to be all family owned opperations.

What is the connection between farm subsidies and land values going up?
 
Quote md
"What is the connection between farm subsidies and land values going up?"

The same thing as when people said wel-fair mothers just had more kids to get more wel-fair. The more land one can get under till. The more farm subsidies one can qualify for. Both wel-fair and farm subsidies come from the same place. The USDA. It's all part of the pie moellermd. The big guys are professionals at working the system. In fact, many have people hired to just handle the enrollment of land in programs, to watch the markets, futures, what to plant, Etc.

Again it's just part of the whole equation.


Era of low-cost food is over, study warns
http://www.ft.com/cms/s/0/59130262-27df-11e0-8abc-00144feab49a.html#axzz1VlX2wwOS

End of cheap food era as grain prices stay high:
http://www.reuters.com/article/2011/01/28/us-usa-grains-idUSTRE70R3EY20110128

Grain Prices Skyrocketing Now -- Higher Food Prices to Follow

http://www.dailyfinance.com/2011/01/14/grain-prices-skyrocketing-now-higher-food-prices-to-follow/

These are the things leading to high land prices and why Corporations are grabbing up huge tracts of land at record land prices.

Moeller, I bet most of those so called family farm people you speak of are incorporated and are run as a corporation with more people then you think involved. Just because a farm operation runs under a family name doesn't mean it's not a Inc big operation. Ford, Dodge and Honda motor company's are run under a family names. LLC's are the big wave now. Which stands for Limited Liabilities Corporation. This limits one on how much they can be liable for, should they be sued. Even the Minnesota Twins are a LLC now.
 
I think that the entire US government system is broken beyond any repair. Govt. regulates businesses, then in return subsidizes them, both ag and other, to make every business beholden to the Govt. The Govt. does the same thing with welfare, social security, et.al. to bind the population and it's loyalty to the system. Humans are creatures of comfort and security. I once read that only approximately 5% of the colonial population actually favored the Revolutionary War. Probably a similar number favor scrapping the current system and starting over. With good reason, it would require unbearable personal suffering, and maybe death, to accomplish. We aren't that tough! I don't believe that subsidies in agriculture create much of a rise in farmland. Just as I doubt social safety nets encourage the downtrodden to remain downtrodden. I think the rise in farmland prices are related more to local, and corporate farmers who have accumulated net worth from appreciation of their current ground, looking to add depreciable assets to the equation, and the flight of money from stocks world wide to "safe havens", of what is percieved to be a stable limited commodity, which produces income, ( dividends), while you hold it. Truth is they are to late. Now is a poor time to buy gold and land, at the top of the market, at least if the price cannot be justified by it's return on initial cost with historical crop values. Last big run up of land values saw a rebound crash to " bring a chicken" levels. In my area of North Missouri, we went from $1500.00 per acre to $200 or less. That ground today is around $2000-2500. In this generation we are all inflation babies, we become accustomed to the theory that the value of everything goes up, in an ever increasing curve, slowly sometimes but inevitable. It is not true. The world is much better able to support itself food wise than 30 years ago, when then President Jimmy Carter, stopped exports to unfriendly countries and single handedly ushered in the ag crisis. The US ag giants have seen to that, exporting technology wholesale, at great profit, with our government approval and encouragement. Should we stop ag subsidies, probably, should we remove the safety net from our weakest members of society, we might have to! As long as we have ag subsidies, auto bailouts, and the most eggregious of all bank/financial bailouts, I sure don't want to hear about the villiany of welfare mommas, education grants, and subsidized school lunch for impoverished kids. It's all part and parcel of the same government. Who do they buy that school lunch from? The subsidized farm corp. Who benefits from Government grants to develope advances in seed and chemicals? The ag companies like Monsanto, Pioneer, DeKalb, et.al. Land prices will rise till commodity prices decline, or there is no longer a belief that US land is a safe haven for investor money, or a different investment offers the better chance of gain. Just as a further point of consideration, what do you suppose the land sellers are putting their money from the sale of ground into?
 
If a family farmer is paying $15,000 per acre for 80 acres. That's 1.2 million. There's more to this picture then we are seeing. More is at play.
 
oldandnew said:
. Just as a further point of consideration, what do you suppose the land sellers are putting their money from the sale of ground into?
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There are many that are still doing 1031 exchanges. They are selling 80 acres of very high priced land and buying more acres of cheaper land. That way they avoid capital gains by investing in a like asset. They sell 80 acres for 8,000 an acre and turn around and buy 320 acres for $2000 an acre in a cheaper state or cheaper area of the state they are in. This in turn drives up the price of the cheaper land because now there is a bidder with extra cash and it has to be spent or given to uncle sam.
If the land belongs to an estate and is sold by the heirs' of the estate then it is revalued at current market price and no capital gains tax have to be paid. Who knows what these people are buying, I am sure some are buying houses, cars, boats, motorcycles, shotguns, or other toys. Hopefully some are saving some money.
 
No it was just shy of 15,000. It was ground near his home place. None of the ground around me that I am aware of is being bought by non-farmers. You have to look find ground less than 9000.
 
Believe it or not, there were a couple of NW Iowa 80's that sold for that $15000 per acre or close, and to "family" farmers. There are a whole lot of 160's that sold for around 7500.00. I have customers around Champaign, Illinois, asking 500.00 per acre cash rent! My advice.... just say no! let the other fool go broke, and when they do the price will come down.
 
Onpoint,

Thanks for sharing the EWG website. Only one word comes to my mind CRIMINAL. :mad: This is only one small piece to the ever ending puzzle, as to why this country is 15 Trillion dollars in debt. :confused:

Sometimes it makes me wonder why I decided a life long career of 26+ years in the Marine Corps. Half of my military career spent in hostile foreign countries, fighting thugs and corrupt government dictators. Now after almost three decades, I have returned to a country, Confused, Frustrated and Appalled at depth of government corruption right here at home. What ever happened to the good old America?

Thinking back, I guess I should have stayed on the family farm. :thumbsup:
 
One thing we can agree on ruefully, is there aren't going to be many pheasants raised on 7500.00 per acre ground. As for the rest of the business political model, as quoted from the movie the "Mission", when postulated resignedly " Such is world" , the Bishop, having failed to protect the indigenous Indians, replies, " No such have WE made the world, such as I have". We allow it.
 
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.
 
wesslpointer said:
ONPOINT I think you missPOINT. $1,500. per ac. Is what I read .:)
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LOL, no it is you that missPOINTED..it was $15,000 per acre. 1.2 Million for 80 acres.
 
OKIEGunner said:
Onpoint,

Thanks for sharing the EWG website. Only one word comes to my mind CRIMINAL. :mad: This is only one small piece to the ever ending puzzle, as to why this country is 15 Trillion dollars in debt. :confused:

Sometimes it makes me wonder why I decided a life long career of 26+ years in the Marine Corps. Half of my military career spent in hostile foreign countries, fighting thugs and corrupt government dictators. Now after almost three decades, I have returned to a country, Confused, Frustrated and Appalled at depth of government corruption right here at home. What ever happened to the good old America?

Thinking back, I guess I should have stayed on the family farm. :thumbsup:
Click to expand...

I hear you loud and clear...Thank you for serving and keeping us Americans safe and free

Onpoint
 
onpoint said:
LOL, no it is you that missPOINTED..it was $15,000 per acre. 1.2 Million for 80 acres.
Click to expand...
I was reading the one above your post that sold for 1,500 then went down to 200 then back up to 2000. To many post's to keep up with . Ha ha. Hay do you have a fast big running Brit we could "talk" about :)
 
wesslpointer said:
I was reading the one above your post that sold for 1,500 then went down to 200 then back up to 2000. To many post's to keep up with . Ha ha. Hay do you have a fast big running Brit we could "talk" about :)
Click to expand...

LOL, no maybe a few fast running Weimaraner or GSP's..a few big Chessies. No Brits. :cheers:
 
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