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Local land auction


DT Fan
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Must have happened Thursday. Buddy of mine called to fill me in, wasn't aware of it. 74 acres, csr of 91. Had to be pretty close to Iowaboy's neck of the woods. Bidding started at $12,500, Three guys must have REALLY wanted it! Gavel price, $18,500!!! 1.4 million for 74 acres, mind boggling. How many years of corn and beans does it take to pay for that?

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7 minutes ago, DT Fan said:

How many years of corn and beans does it take to pay for that?

All of them..... ūüė≥

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Hmmm wonder where and who....well I've got 2 or 3 pretty good guesses who but wasn't aware of any land for sale....tho I can't afford any so I don't really pay attention.....

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It always takes at least two guys to make an auction I guess. I‚Äôm normally the first place loser but in this case my hands would have been securely in my pockets ūüėä

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There was a sale here a few months ago. That was the first time I ever saw a hill farm bring $10,000/acre. It was a local farmer who owned adjacent property who bought it. There was 1,000 acres of Missouri River bottom that was auctioned just the other day about 25 miles from me. It sold for $12,000/acre. 

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12 minutes ago, iowaboy1965 said:

Hmmm wonder where and who....well I've got 2 or 3 pretty good guesses who but wasn't aware of any land for sale....tho I can't afford any so I don't really pay attention.....

Kindred spirits Doug!! At my age I don't want to take on any debt, let alone over a million! Not sure who the ground belonged to, Robbie went to the sale and called to tell me about it. We discuss the high price of land on a periodic basis.

 

2 minutes ago, Dirt_Floor_Poor said:

There was a sale here a few months ago. That was the first time I ever saw a hill farm bring $10,000/acre. It was a local farmer who owned adjacent property who bought it. There was 1,000 acres of Missouri River bottom that was auctioned just the other day about 25 miles from me. It sold for $12,000/acre. 

That river bottom ground is something. Good year, great crop. Flood year, not so much. Old trapshooter I knew farmed a fair amount of it. Said if it flooded one year in three you were farming for free.

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44 minutes ago, DT Fan said:

How many years of corn and beans does it take to pay for that?

Off that piece itself, forever.  Off of the other 5,000 or more acres the farmer owns (if a farmer bought it) maybe as little as 5-10 years.  Land quit paying for itself around here probably 50 years ago.  Doesn’t stop people including us from buying it. 

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Idk uncle was involved in some estate stuff for his 2nd wife's family probably, well 15 or 20 years ago now, and I recall him trying to steer the price to where the land would pay for itself or come reasonably close to it. I think it ended up where the others involved agreed more or less. I dont recall who bought it but it wasn't any of my family. Don't think it was part of theirs either but couldn't swear to it.

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2 hours ago, Big Bud guy said:

Off that piece itself, forever.  Off of the other 5,000 or more acres the farmer owns (if a farmer bought it) maybe as little as 5-10 years.  Land quit paying for itself around here probably 50 years ago.  Doesn’t stop people including us from buying it. 

  Agreed.  The guys who normally push this are the ones running several thousand acres where they take the income from the whole operation over a few years to pay for it.  The only problem is the tax assessor sees that then up goes the assessments.  Then the town and county want their share through increased rates.  A prospective parcel paying its own way stopped happening around these parts 25 years ago.  Then you have the Mennonites and Amish who will admit a purchase is a couple generation prospect in terms of paying off with the kids shouldering a large portion.  Lately, to get at more ground they are thinking more like 100 years of sweat.  The ordinary farmer coming up by the bootstraps does not happen anymore.

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41 minutes ago, CDN 400 said:

I realize there is difference in our money but it's still cheaper then here, we are in the $30-50000 an acre here with the majority in the higher end.

what he said and often with knock down buildings

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3 minutes ago, wheatking said:

met a guy this summer that figured the price of land has gotten so out of wack he pays abit more to rent than average to get land but still figures its cheaper in the long run than buying it so maybe he's on to something 

  Assuming that a farmer can find ground to rent.  Sometimes it is all about who you are or are not.  A guy from 15 miles away rents a lot of ground around me.  He can do it because his grandpa did not beat the neighbor out on buying 30 acres over 60 years in the past.  Or sometimes as simple as you had success that they never did in farming.  This will all reset at some point.  We have seen the value pull back such as it was after the grain embargo in 1980.  The only thing is the rubber band is far more stretched today than in 1985 so the pull back will be more dramatic by quite a bit. 

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23 hours ago, VacDaddyt said:

If it is along a major highway it went to development.

Pretty sure it's on a gravel road. Not to say some of it might get houses built on it though.

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The only ones that complain about the price land are the ones who want to buy it.

Not the ones whom bought it or selling it.I bought my farm 33 years ago,not buying or selling but land that is expensive today will be cheap tomorrow. Just the way it is.

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11 minutes ago, Jacka said:

The only ones that complain about the price land are the ones who want to buy it.

Not the ones whom bought it or selling it.I bought my farm 33 years ago,not buying or selling but land that is expensive today will be cheap tomorrow. Just the way it is.

That is so true.  I can sell land bought 2 years ago for more then what we paid.  

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2 hours ago, Jacka said:

The only ones that complain about the price land are the ones who want to buy it.

Not the ones whom bought it or selling it.I bought my farm 33 years ago,not buying or selling but land that is expensive today will be cheap tomorrow. Just the way it is.

  I don't know about that.  I know of plenty of situations where the buyer thought that they paid too much or the seller got too little.  A buyer always feels as though they may have only one shot at it so they offer a "knock the other guy out" type offer.  A seller that is perceived as being weak such as being forced to sell due to death or divorce often has little negotiating power.  Land has gone up for decades now around me.  Everybody who said the stock market can only go up has seen trillions wiped out as it went from a DJIA of 36,000 to 30,000 in the last week or so.  I expect some type of correction in land.  It's just how markets work.  If everything did nothing but go up then everybody would be a winner but how often has that ever happened in the history of humanity?

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200 acres sold for $20,900/acre here just a couple weeks ago.  A very well off farmer who owned quite a bit of land told me once "I never bought a piece of land that seemed like a good deal at the time."  I get that, but it's hard be think that when it's this high.

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Found out the who what where last nite. Not far from me at all. Bout a 1/4 mile in fact. Didn't know it was up for sale. Doubt very much it will ever be houses as long as guy that bought it is alive but who knows what his kids may do.  There is a good portion that is paved road frontage tho. He isn't a farmer but has money to invest....

I wouldn't be suprised but what the nice old farm house and barn get bulldozed. 

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