Crazy land prices

[j-bird]

I just had a place down the road form me go up for auction - mostly farm ground (72 total acres, 2 acre home site and 4 acre wood lot). When the hammer fell the bid was $9,600 and acre! Don't get me wrong it's essentially one big field and flat and good (not awesome) corn ground, but still. Even if they sell the house for a fair price they still paid nearly $8k and acre - WTF!!!!

I need to sell and start over someplace else!!!! Someplace with more trees.

 

[SD51555]

Market price in land is always set by the craziest guy in attendance.

 

[j-bird]

Wrong, craziest 2 guys in attendance!

Yep - it was a good old fashioned "piss'n contest" between "Mr. Stupid Money" and "Mr. Stupider Money"!!!!

 

[gunther89]

My FIL watched 2 farmers bidding on 2 80 acre fields that bordered both their farms. Both had check books with an endless supply of money and when all said was done, the first 80 went for 10 grand an acre and the 2nd 80 went for 12 grand an acre. He just shook his head and went home laughing at the 2 farmers lol

 

[kabic]

What is the old saying...land may only be available once a generation?

If there is land next to something you already own, it is worth more to you than someone else.

 

[j-bird]

What is the old saying...land may only be available once a generation?

If there is land next to something you already own, it is worth more to you than someone else.

I'll agree with that. What I see is that in order to have a specific sized enclosed hog operation in my area you have to have so much ground - theory is to use the waste on. So if you want to increase your hog operation you have to have more ground. Thus it isn't just about the grain you can grow on it - it's more than that!

 

[Jim Timber]

If we ever sell, I'd be hard pressed not to auction it off. Not like a retail hired auction, but the listing would be open bidding so the arrogant prick neighbors could bid each other up.

 

[Bill]

It's a crap shoot.

5 years ago I paid about $15k over market for an 80 that bordered me. Mostly open ground but I was so tired of watching an endless parade of road hunters drive all over it during gun season it was worth it to me. Today it's worth more than I paid and my truck is the only one that's been in there in the last 5 years.

 

[j-bird]

It's a crap shoot.

5 years ago I paid about $15k over market for an 80 that bordered me. Mostly open ground but I was so tired of watching an endless parade of road hunters drive all over it during gun season it was worth it to me. Today it's worth more than I paid and my truck is the only one that's been in there in the last 5 years.

When I bought the other half of my place from the BIL we had it appraised (one we paid for , one he paid for) and then paid the average of the two. I think we came out Ok at that time and prices have only went up since.

Land is the one thing they ain't making anymore of!

I have my eye on a neighbor's 40, but they won't sell - but her kids will (not saying I wish anything bad - I'm a bad person, but not that bad). Hopefully I don't have to pay out the nose for it, but you never know.

 

[bat man]

Land is the one thing they ain't making anymore of!

.

That is not a great reason to overpay. Emotion is one thing but land values can go up and down.

 

[j-bird]

That is not a great reason to overpay. Emotion is one thing but land values can go up and down.

The only way I would even consider selling would be to buy even more elsewhere. In my area corn field goes for 2 or 3 times the going rate for timbered ground. I have a 1/3 cover vs 2/3 crop field - I would really prefer to flip-flop those percentages.

 

[j-bird]

With what crop field is going for per acre by you...I'd be putting up the for sale sign. Should be able to get one heckuva bunch of timbered ground for what you'd get paid on the crop ground.

Problem is there isn't any timbered ground of any size in my general area - I would have to move to a different county! Kids still in school - so it will be a few years yet. Trying to find 100 acres of trees in my area that isn't owned by a timber company is impossible - I would even consider buying a property that had been logged at a reduced rate - depending on what was left standing. Clear cutting isn't very common in my area so that helps. What you have to avoid is those places that have such mature oaks that there is NO understory where a harvest would result in an essential clear cut or potentially even worse. They say timing is everything - right now the timing isn't right on my end.

 

[foggy]

Kinda like wood from a certified forest? (OK....removing tongue from cheek ;) )

 

[wiscwhip]

What's worse not selling to China or losing whole fields of corn to rootworm?

 

[wiscwhip]

I would agree MO, and I bet many of the ones who have done those things and feel the repercussions have been smaller operators in areas where corporate farms have somewhat forced their hands in the marketplace. Should they be smarter than that, sure, but $$$ talks and bu!!$hit walks when the bills need to get paid. Hopefully they are smart enough to not plant what cannot be sold. Rootworms are a b!tch. I helped a farmer years ago back out of high school that fought them constantly in some lower fields when he would plant corn behind corn. If he planted behind 2 years of hay, he could do 2 years of corn, then he did a year of soys, then back to corn one year before going back to hay. If he did 2 years of corn the second time around, it would get hammered by rootworm.

 

[j-bird]

Corporate farms are big in my area - "small" farms operate on 1,000 acres in my area. They don't own all that ground and rent/lease some of it, butt hey tend to jump on it when it hits the open market. The small independent farmer is pretty much a thing of the past in my area and that is what helps drive prices as well. It's all about volume. The positive thing for me is I get a flat rate per acre - good year, bad year or otherwise.....not my problem. I still care because the farmer on my place is family so I want to see him do well.