Landowners, what % of your net worth does your land equity represent?

[Mortenson]

^^^^ ... then consider their property taxes are about 1/4 of what recreational ground is ... farming as a business is just an entitlement gig.

Cheap food policy buddy. Most the farmers vote for the people saying they'll cut the entitlements. I bought private crop insurance before it was federal, and would again. Our land taxes are nearly $70/ac. Don't hate the player, hate the game.

 

[Howboutthemdawgs]

Cheap food policy buddy. Most the farmers vote for the people saying they'll cut the entitlements. I bought private crop insurance before it was federal, and would again. Our land taxes are nearly $70/ac. Don't hate the player, hate the game.

With farmers seemingly buying up this $10,000/acre land as soon as it becomes available, driving $80,000 trucks, new ish $300,000 tractors, $250,000 drills, trips all over the world from seed and chemical companies, etc…shouldn’t landowners who cash rent be demanding a bigger piece of the pie? I know you don’t want to shoot yourself in the foot but this just asking for your anonymous internet opinion. Seems like landowners with ag hold a pretty big leverage cog in this wheel.

 

[Tree Spud]

Cheap food policy buddy. Most the farmers vote for the people saying they'll cut the entitlements. I bought private crop insurance before it was federal, and would again. Our land taxes are nearly $70/ac. Don't hate the player, hate the game.

I get it, it's the system you have to operate in and you have to take advantage of what you can. Just wish my business had the same supports

 

[Howboutthemdawgs]

I get it, it's the system you have to operate in and you have to take advantage of what you can. Just wish my business had the same supports

I don’t get to sign up for government insurance when interest rates hit 7% and people stop buying homes. I’m jealous!

 

[Mortenson]

I get it, it's the system you have to operate in and you have to take advantage of what you can. Just wish my business had the same supports

Your business doesn't get to take advantage of the system in any way? Do you have good times and bad times, or is it always steady? Do you get any tax advantages? I know, it's not the "same supports", but hopefully there's a perk to the job that gets aided in someway by being part of the system.

As far as cash rent, I'm not really sure because we don't cash rent anything. Also don't buy 80k trucks or take world trips. We do own 1 farm in Central IL that could rent for over 500 but we've rented it to the guy for 400 the past couple years. The idea is for the tenant and the landowner to both make money. Taxes are in the 60s there too.

 

[Howboutthemdawgs]

Your business doesn't get to take advantage of the system in any way? Do you have good times and bad times, or is it always steady? Do you get any tax advantages? I know, it's not the "same supports", but hopefully there's a perk to the job that gets aided in someway by being part of the system.

As far as cash rent, I'm not really sure because we don't cash rent anything. Also don't buy 80k trucks or take world trips. We do own 1 farm in Central IL that could rent for over 500 but we've rented it to the guy for 400 the past couple years. The idea is for the tenant and the landowner to both make money. Taxes are in the 60s there too.

Obviously I was speaking in generalities and not specifics about you. I’m just going off of the limited experience I have with farming. Trust me I know it can be super tough to make a living. The poor mouthing though with some farmers can get comical.
I have a buddy in south Georgia who does some farming and comes from a big farming family. I bust on him a good bit about him poor mouthing. I talked to him a while back where he did nothing but complain for five minutes and then the very next words out of his mouth were “yeah I’m looking to buy up some more farmland if I can find any“!

 

[Mortenson]

Yeah I agree with that for sure. Trust me I find most of it as annoying as you guys do.

 

[b116757]

There is a big difference in purely recreation land and farm ground in the respect that farm ground will produce some annual income where as most recreation ground produces very limited income through timber sales every great once in a while. I also think with so many people transitioning from commercial office space to working from home that is also going to have an effect on land prices particularly in areas with fiber internet available. I know where my family in Northern Wisconsin lives land prices have jumped because they have rural fiber so many work from home folks love the area.

 

[Brian662]

There is a big difference in purely recreation land and farm ground in the respect that farm ground will produce some annual income where as most recreation ground produces very limited income through timber sales every great once in a while. I also think with so many people transitioning from commercial office space to working from home that is also going to have an effect on land prices particularly in areas with fiber internet available. I know where my family in Northern Wisconsin lives land prices have jumped because they have rural fiber so many work from home folks love the area.

Just got fiber hooked up at my hunting property, there is no doubt that it has/will increase property value.

 

[letemgrow]

We do own 1 farm in Central IL that could rent for over 500 but we've rented it to the guy for 400 the past couple years. The idea is for the tenant and the landowner to both make money.

The land owners in my area are quick to bump up cash rent rates when commodities are high...the prices don't drop back down (if ever) when commodities take a nose dive tho....

 

[jsasker007]

Cash is king. Being able to keep 100% is much better than having 30% stolen by the government to piss away.

 

[OakSeeds]

In McLean county IL, land is now selling for as much as 25,000 / acre, and cash rent may go $500-$600 / acre.
A bank in Christian County, IL recently helkd a cash-rent auction for 450 acres they managed. Winning bid was $665 / acre .... $300,000 lease commitment before you ever drop a seed.
Buying for most folks in cetral IL is pretty much out of reach; long term leases for hunting rights are becomming more prevalent.

 

[Howboutthemdawgs]

In McLean county IL, land is now selling for as much as 25,000 / acre, and cash rent may go $500-$600 / acre.
A bank in Christian County, IL recently helkd a cash-rent auction for 450 acres they managed. Winning bid was $665 / acre .... $300,000 lease commitment before you ever drop a seed.
Buying for most folks in cetral IL is pretty much out of reach; long term leases for hunting rights are becomming more prevalent.

That’s insane. i can see it going to a situation where more recreational land is bought with partners. Personally I want nothing to do with a partner but for some folks it’s the only way to get a slice.
All I hear is how crazy high taxes are in Illinois and how crazy the government is…Same with California, yet good luck buying in those states. Can’t figure that one out either.

 

[Maddog66]

For us it’s 15% and that feels about right. If an adjoining property came up for sale that I wanted bad and it was market priced for my area, I guess I might push up to 20% or so. Cash only……I’m not financing anything for awhile…..and I’d rather get beat up by Mike Tyson than have a partner involved my hunting land.

 

[Foggy47]

I hear those rental rates that are common today.....and I gotta wonder. The rental rates are 2 to 3 times the cost of that land in my youth. The risks are so high for both the renter and the landowner now......that a time like we have this year (drought) could bankrupt allot of folks.....IF NOT FOR GOVENMENT SUBISDIES AND PROGRAMS. Our government is basically broke (much like Califormania's) thus at some point very soon.....TSWHTF. Not sure how we can continue in this way. Seems all models are now fully stressed. Nothing adds up. Buckle up??

I'd wager this same advice was said by old timers like me several decades ago. Still.....we muddle through. The risks seem so much higher tho.....and so much more regulation and red-tape....not to mention our government is all F'd up now.....My 2 cents. I'm a dinosaur and still hanging on to the old models of the way we were