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Land Prices No End in Sight


hobbyfarm
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I grew up on a 44 acre hobby farm that dad still lives on and farms. Hes getting old and hasn't said what he plans to do with it. I would love to take it over, but if he decides to sell there is no way I can afford it. Around here it is the BTOs buying up the farms. If they bought his I already know what would happen. Two days after the sale a track hoe would show up and knock down the house and barn, and they would rip out every fence row we put in together. Then whole place would get plowed into one big field. The new owner would spend four hours there planting in the spring and four hours combining in the fall, otherwise they wouldn't set foot on the property. They wouldn't even notice farming the extra 40 acres, just another tract to go along with all the others. There would never be another cow here or another bale of hay made. It's kind of heartbreaking what has happened to the small farms around here. 

Sorry, I'm just rambling and venting my own frustrations. 

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4 hours ago, gearheadmb said:

I grew up on a 44 acre hobby farm that dad still lives on and farms. Hes getting old and hasn't said what he plans to do with it. I would love to take it over, but if he decides to sell there is no way I can afford it. Around here it is the BTOs buying up the farms. If they bought his I already know what would happen. Two days after the sale a track hoe would show up and knock down the house and barn, and they would rip out every fence row we put in together. Then whole place would get plowed into one big field. The new owner would spend four hours there planting in the spring and four hours combining in the fall, otherwise they wouldn't set foot on the property. They wouldn't even notice farming the extra 40 acres, just another tract to go along with all the others. There would never be another cow here or another bale of hay made. It's kind of heartbreaking what has happened to the small farms around here. 

Sorry, I'm just rambling and venting my own frustrations. 

Sad reality for many old farmsteads. The buildings and homes told the story of those who lived, worked and raised a family there. What livestock and crops they raised.  Large orchard or a garden. 

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4 hours ago, gearheadmb said:

I grew up on a 44 acre hobby farm that dad still lives on and farms. Hes getting old and hasn't said what he plans to do with it. I would love to take it over, but if he decides to sell there is no way I can afford it. Around here it is the BTOs buying up the farms. If they bought his I already know what would happen. Two days after the sale a track hoe would show up and knock down the house and barn, and they would rip out every fence row we put in together. Then whole place would get plowed into one big field. The new owner would spend four hours there planting in the spring and four hours combining in the fall, otherwise they wouldn't set foot on the property. They wouldn't even notice farming the extra 40 acres, just another tract to go along with all the others. There would never be another cow here or another bale of hay made. It's kind of heartbreaking what has happened to the small farms around here. 

Sorry, I'm just rambling and venting my own frustrations. 

  But only you know the details as to how things came to be.  A lot of kids did not want to farm and went off and lived some kind of life outside that farm.  Quite a number of farmers are stubborn and hard headed so an arrangement with a son (or daughter) was never going to work.  A fair number of kids did not want to be told what to do so again farming with dad was never going to work.  The point is while what is done is done but maybe somebody reading this might shine a new light as to making a family farm work.  At least we live in a time where we don't always have to learn the hard way and can readily sample what others experienced or thought.

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3 minutes ago, 766 Man said:

  But only you know the details as to how things came to be.  A lot of kids did not want to farm and went off and lived some kind of life outside that farm.  Quite a number of farmers are stubborn and hard headed so an arrangement with a son (or daughter) was never going to work.  A fair number of kids did not want to be told what to do so again farming with dad was never going to work.  The point is while what is done is done but maybe somebody reading this might shine a new light as to making a family farm work.  At least we live in a time where we don't always have to learn the hard way and can readily sample what others experienced or thought.

I hate seeing old farmsteads disappear too.  It was sad seeing the old barn torn down at my parents.  But the days of making a living on 160 acres let alone 40 acres are long gone.  I wouldn't hold your breath that we will go back to smaller farms...that ship has sailed.

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10 minutes ago, IH Forever said:

I hate seeing old farmsteads disappear too.  It was sad seeing the old barn torn down at my parents.  But the days of making a living on 160 acres let alone 40 acres are long gone.  I wouldn't hold your breath that we will go back to smaller farms...that ship has sailed.

  It's all a matter of what your goals are.  Most people with 160 acres are not expecting to make a full living off of a farm.  They want the satisfaction of working with nature.  They want to have to use binoculars to see their nearest neighbor versus looking 10 feet into the neighbor's home.  For that matter 160 acres with the right soil and market access can make a very good living.  A lot of orchards and vineyards around here are smaller than that.  Vegetable crops.  My opinion is that society right now is collapsing in real time and I'd rather be on my ground even if it does not hold a candle to some operation in Illinois that annually produces 85 bushels per acre of soybeans or 300 bushels per acre of corn than in Rochester or Buffalo.

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9 hours ago, gearheadmb said:

I grew up on a 44 acre hobby farm that dad still lives on and farms. Hes getting old and hasn't said what he plans to do with it. I would love to take it over, but if he decides to sell there is no way I can afford it. Around here it is the BTOs buying up the farms. If they bought his I already know what would happen. Two days after the sale a track hoe would show up and knock down the house and barn, and they would rip out every fence row we put in together. Then whole place would get plowed into one big field. The new owner would spend four hours there planting in the spring and four hours combining in the fall, otherwise they wouldn't set foot on the property. They wouldn't even notice farming the extra 40 acres, just another tract to go along with all the others. There would never be another cow here or another bale of hay made. It's kind of heartbreaking what has happened to the small farms around here. 

Sorry, I'm just rambling and venting my own frustrations. 

"He's getting old"

Well how old is he,do you have siblings, is your mom still alive and what does he want to do with it.You didn't give much info and as far as his wants or needs YOU have to ask him.The worst you be is that in reality you won't be able to buy it and the best would be you can.

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On 10/25/2022 at 1:05 PM, 766 Man said:

  It's all what lengths a person is willing to go through.  The Amish and Mennonites have gone to 100 year plans to pay off ground.  Are you and your family willing to do that?  The families have children work for income that is kicked back into the household.  Any of us would be put in jail for making a 10 year old work 30 plus hours per week.  No doubt it is chalked up as mom or dad is just fast when explaining a big pile of lumber or quilts.  Some farms are swimming in cash but most are using other methods to make purchases.  

Very rare to see owner financing here.  I can't recall seeing the owner financing option for the last few years.  With cheap rates it just didn't pencil out for seller.  Now as rates move it will be interesting to see if owner financing makes a come back locally. 

So my question for you or anyone is how is the plain community coming up with this money?  Borrowing from family?  Wouldn't the family want the money back in a reasonable time frame.  In the case of the Lancaster County properties super a mentioned we are talking approaching 3 million.   On the place by me if hypothetically they put up 2 broiler barns they will be 3 million in the hole.  If not with closing costs they are darn close to 1.5 million.

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2 hours ago, hobbyfarm said:

Very rare to see owner financing here.  I can't recall seeing the owner financing option for the last few years.  With cheap rates it just didn't pencil out for seller.  Now as rates move it will be interesting to see if owner financing makes a come back locally. 

So my question for you or anyone is how is the plain community coming up with this money?  Borrowing from family?  Wouldn't the family want the money back in a reasonable time frame.  In the case of the Lancaster County properties super a mentioned we are talking approaching 3 million.   On the place by me if hypothetically they put up 2 broiler barns they will be 3 million in the hole.  If not with closing costs they are darn close to 1.5 million.

The highest price land deals that I have heard of around here have all been farmer purchases. I could be all wet, but I’m betting “here”, they just have the money. There are lots of operations around here that work very good, until they don’t work at all. There have been a lot of BTO’s come and go in the last 50 years here. It seems like every so often someone is buying all the land. The next thing you know it’s all for sale again and the next guy you never heard of is the new BTO. 

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11 hours ago, Dirt_Floor_Poor said:

The highest price land deals that I have heard of around here have all been farmer purchases. I could be all wet, but I’m betting “here”, they just have the money. There are lots of operations around here that work very good, until they don’t work at all. There have been a lot of BTO’s come and go in the last 50 years here. It seems like every so often someone is buying all the land. The next thing you know it’s all for sale again and the next guy you never heard of is the new BTO. 

Same here, except the BTOs here are the same guys and their children. They keep justifying the price by being able to spread the cost across all the acres. Which I guess will work as long as the continuing generations wish to keep farming.

What kinda sucks, is that if a small operation wants to expand, they can't without busting their bank account. This includes if you just want to rent a piece of land. The prices just keep jacking things up.

Got a piece of land next door to me I would like to rent next year, not sure if I will be in the running. A local farm sold for $25500 an acre last week. That will just lack the rental rates. Will put my bid in I think I can handle, and hope for the best.

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2 hours ago, Farmerboy72 said:

Same here, except the BTOs here are the same guys and their children. They keep justifying the price by being able to spread the cost across all the acres. Which I guess will work as long as the continuing generations wish to keep farming.

What kinda sucks, is that if a small operation wants to expand, they can't without busting their bank account. This includes if you just want to rent a piece of land. The prices just keep jacking things up.

Got a piece of land next door to me I would like to rent next year, not sure if I will be in the running. A local farm sold for $25500 an acre last week. That will just lack the rental rates. Will put my bid in I think I can handle, and hope for the best.

  That's the difference between the Corn Belt and the Northeast.  The acres for a number of operations in the Midwest are 10, 15, 20 thousand or more acres.  A million dollar bite to buy some ground is no big deal.  There are extremely few operations of that size around me and 3 that I know are heavy into vegetables.  Don't discount seller financing and multi-decade plans because it is not happening around you.  

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On 10/26/2022 at 1:03 AM, Ian Beale said:

Might be changes in the wind though

Meanwhile in Canada

torontohome.jpg

http://www.smalldeadanimals.com/2022/10/25/he-doesnt-think-much-about-monetary-policy/

  Watching what I say but everything for the last few decades has been a gimmick to goose the economy.  Suppressed interest rates, minimal money down, and extended terms.  There is not much goosing left to do short of a massive printing of money to inject into the economy.  

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