Selling price of land WOW!

Back from a land auction that was conducted yesterday. Bare farm land-no buildings-80 acres of productive farm ground.  No housing or commercial development  possibilities $13,950 per acre. $1,116,000 for an eighty acre farm.   Marlyn nwia

When I bought my land, I calculated the roughly $3000/acre cost at 30 yr mortgage out.  I needed $250/acre profit to break even (same as paying $250/acre rent).  Good Iowa land will yield better than mine, but it still has to be somewhat equivalent to $1000/acre rent.  Must be adjacent to his/her farm or really needed it!

My aunt and uncles farm sold a moth ago here in NE Oklahoma. 117 acres, 6 ponds, cross fenced, good pasture and hay meadows, house, barn, shop, several sheds. Good well and rural water available at the property line. Admittadly house and other buildings were a little run down but mostly cosmetic on the structures and perfectly livable/usable.

Some people don't have to pencil it out. They have that much cash. One thing for sure,they ain't making more land, and you can't take the cash with you in the end. Tracy Martin

188 Acres in Washington CH Ohio brought $6444 per acre, all farm ground no buildings to speak of.

8100 per acre in east central illinois. 113 acres, old timers here say they neve bought a farm worth the money for the last 100 years! Appreciation is what they hoped for all those years back.

That might be a little on the high side in my area -- and my budget. There are folks that are trying to get that for land they think could be developed -- sure would hate to see these places go, but money talks. Older folks move on and younger families don't want to hang on to the "old places". Hard to argue with that if they can't make a fair living off the farm.

Land near to us had been over $10,000/acre but mainly for development ground; housing boom is busted and the prices are beginning to falter.  Last week the local realtors' came together to try to salvage some land value and opted to buy out a few parcels that had no lookers or offers since being dropped $2000/acre from $11500, they just know this will turn around and they will make a tidy profit(stupid).

I have been watching these properties for some time, investors, speculators, higher income level land holders are now trying to cash out before the dump prices cut in, thirty to forty plus percent of land in tillage here had been left fallow while awaiting the huge commercial/residential developments that used to happen so often, I am sitting back as it comes to a head.  And Yes, they are not making more land, but fuel and equipment to re-clear  land to farm is expensive, it is even more so to grade for development that may never accelerate to sellable; and yet , yes there has been no land "Made" since the dawn of time and the profit line to farm is still low enough to not cover $3500/acre for over thirty to forty years, the return at the other end may never come to fruition and the cost of maintaining the land to maintain it's value creeps ever higher daily.

Land that brought $4500-$5000/acre five years ago is not being actively looked at here for $3500/acre, there is little money from lenders available and unless you can cough up cold cash owner financing could be a problem to break into it as they are looking to a fast return to their own investment.  Some cash is still out there but the "Old money" is waning fast for basic bills and expenses.

Lots of $5,000 dollar land around here the last 2 years.  Most 1/3 and 2/3 arrangements have been the eqivalent of 150 to 250 $/acre cash rent.  A lot of farm operations have old money and its a good investment  at those prices.  In the last 5 years the worst yields on this kind of land went 180bu/ac on corn and 50bu/ac on beans.  Its not hard to see why the farmers with $'s are buying it.

John is right on the return, looking back my numbers are a little different.  My purchase was 190 acres. 158 tillable, came with house, shop, shed, and two barns.  I had to take out a 30 year mortgage at 6+% interest.  My yearly payment total divided by 158 acres came out to about $250, so I told myself I was paying myself $250/acre rent, or I had to make $250/acre profit to break even.  I guess if I had cash to spend or deducted the value of the house and buildings my per acre cost would be lower.  Anyone spending nearly $14000/acre either has a very trusting banker or a pile of cash to spend.  My guess it is the latter.

Our farm just sold 3 acres with all road frontage on a state highway for $35,000.
But on the other hand I know a fellow with 86 acres and 1500 feet of brook frontage and roads through the whole property. Alot of woods and alot of open space in a very rural town. Post office and a gas station and that's it. 30 mins from Albany. $200,000 and can't sell it.??????

PS: Bush Hog with his tractor. Massey 65 with a Perkins diesel.
Nice little tractor.

Duh... 285.86 total acres in the above tracts.  Buyer is rumored to be a non-farmer, cash investor.

Went to a land auction yesterday here in the thumb of Michigan, several parcials, all were bare ground, scattered around the county, 20 acres pieces all the way up to 198 acre pieces, and all of them sold for $4000 per acre or more. THe highest went for $4200 per acre.  All where bought by local farmers from the area, i know most all of them.  I bought land from my aunt's estate last fall and paid what i thought was to much at $3800 per acre, and looking back at it now, i am sure glad i did buy it. By the way i bought 240 acres of her farm.