$20,000.00

[jrsiajdranch]

Yep Jim that dutch ancestery combined with their reformed religion seems to put them in a very unique position. 

THe ole saying that if you ain't dutch you ain't much is very true there.

BTW no slam on those folks They have very neat farmsteds and are excellent farmers. I am mostly embaressed when I travel over there.

[verbatime]

My response to jr didn't differentiate between knowing the area of the $20,000 an acre land or not.  I'm talking about the perception as a whole and not of that area.  Farmers can bid the profit out of farming all they want it doesn't matter if ones knows the area.  Things change from one generation to the next more than one thinks.

[ihmarty543282]

Cash still must be king....Every time someone passes the family can`t wait to sell.

[hardnox604008]

Maybe an extra $million or so in that tansaction?

Heck, you could probably buy a 30 billion gallon ethanol mandate for $100 million.

Just need to find a hundred guys with an extra million and we'll all be billionaires.

[Sludgeman]

it seems rediculous to pay that but if they have cash and r gettin 1/12 of a percent from some bank that might be buying junk european bonds like mf global did, suddenly it dont sound so bad. i dont trust any bank suddenly and if the cme doesnt clean this up Quick they r going down too. it is high but you can look at it, which is better than my global account.

[DrRexDexter]

Iowa DOES have some of the best farm land on the planet. I do not besmirch anyone else's, the US has much of the best land on the planet, but almost anyone would be pleased to discover they now own some of Iowa's fine classic black dirt.

However, $20K an acre? I hope whoever got it has paid for it in full, as unloading all that dirt for that in the forseeable future isn't something I'd have the onus to do. Five years from now, that Appraisal mught need to be equipped with a periscope.

[kraft-t]

You are probably right. However, that is the way price is established. They keep bidding until one of the potential buyers backs away. I dare say that most folks in the community are convinced that their property is worth that much or nearly so.

I live in Bixby OK a suburb of Tulsa. One mile from me is a one acre plot with an old concrete block house with the windlows broke out. The buyer wants $230K for that one acre. Now it is not unusual for walgreens to buy a 5 acre plot for a million and spend another million on the building. But usually they are a selected property with a lot of residential growth building around them.

This acre sits where there is not much growth around it but everybody thinks their property is worth as much as the one they heard about.

Evidently most of us think this inflation will keep on growing because we have not yet put our own properties on the market. WE must be convince that our land is worth $10K or more even though we just bought it a couple years back for $5K per acre.

[Canuck_2]

---

@kraft-t wrote:

You are probably right. However, that is the way price is established. They keep bidding until one of the potential buyers backs away. I dare say that most folks in the community are convinced that their property is worth that much or nearly so.

I live in Bixby OK a suburb of Tulsa. One mile from me is a one acre plot with an old concrete block house with the windlows broke out. The buyer wants $230K for that one acre. Now it is not unusual for walgreens to buy a 5 acre plot for a million and spend another million on the building. But usually they are a selected property with a lot of residential growth building around them.

This acre sits where there is not much growth around it but everybody thinks their property is worth as much as the one they heard about.

Evidently most of us think this inflation will keep on growing because we have not yet put our own properties on the market. WE must be convince that our land is worth $10K or more even though we just bought it a couple years back for $5K per acre.

---

A little more complicated.

Some of us, and I think you are in that situation, do not know what we would do with a pile of cash but have lots of fun farming the land.

BTW your $10,000 per acre is probably low in this market.

Farm in Southern Ontario just sold at auction yesterday for over $11,000.

Know of another sold recently which would work out to over $13,000 per workable acre or a full 13K per acre for entire farm.

Those prices for our land would make your $20,000 Iowa land look cheap.

Farm 

[djsinseia]

Really?

Who goes to a farm sale and doesn't bring a checkbook?

[Jim Meade / Iowa City]

Purdue has a discussion paper quoted by the U/Ill.

http://www.farmgateblog.com/article/1510/land-prices-what-is-driving-this-vehicle-anyway

"Summary:
 Increases in farmland values have resulted from higher farm earnings and lower than usual interest rates. If earnings decline and interest rises, then land prices would decline. If investors see less chance for income through cash rents, then they will not bid up prices. Current prices might seem reasonable to some and unreasonable to others, however they reflect the investor’s belief that income will remain high and investors are evaluating the market as part of their bidding process. However, when investors are using non-agricultural production reasons for making purchases, then clearer heads may not be prevailing."