I heard it was a 80. With banks only borrowing $4500 on land and if you had to borrow paying those prices you`d have to be nuts. It`s funny where all these farmers that come out of the woodwork with these $1-$3million warchests. See, these warchests are after-tax money. Up until 2008 farming was okay, but not the bank vault orgy it is today. The question is, if someone had that $1.6 million laying around, why didn`t they buy 400 acres just 5 yrs ago when land was $4000/a?
$16,500.00 was the last record for that area. Like your last article, Jeff. Whos sitting on the bubble? I just about fell out of my chair when I heard this on the radio this morning. I think I just might look at selling my ground and move to the bahamas. haha
Thats what I was wondering myself, if all this is with "cash" then why the heck weren't they paying ground all along.
Sometimes the term "equity" is used to describe how farms are being bought, that isn't the same is cash.
Alternatives...let's see, currently Walmart is paying a 2.5% dividend and is growing their dividend about 15-20% per year. In ten years which investment do you think will be better?
Wonder how competitive the bidding was, a few guys or just a couple. Who knows it might be worth 40,000 an acre in a few years. I would bet it will be woth 30,000 before its worth 3,000.
Just had a chat with the wife of the fellow who bought this ground (even though their names are out in some media outlets, I said I'd respect her request to keep their names out of our discussion). And remember, this is just one side of the story.
She said this was the one piece of ground her husband had been wanting for years. The other bidder was another local farmer, from the sound of it, more of a BTO than her husband (who's a dairy farmer). She said the other fellow had told her husband a couple of years ago (when they were friends) that he would do whatever he needed to in order to get that piece of land. Said her husband, from that point on, basically lost a friend. So, then it come up on for sale and it was just the 2 of them bidding. She said the bidding lasted about 10 minutes. Said the town, including their bankers, was behind them in getting the land and said they were excited when they did.
Funny part of it: She said she was actually at the dentist getting a tooth filled while the auction was going on, and her husband came in to get the checkbook from her. Said that was when she knew something had happened!
She said they're worried about the public view of them being negative simply because of the dollar amount they paid. But, she wanted to assure me that they've worked for every nickel they've made, and they're going to continue to do it. Said the best part of the process was having the support of their community all along.
I'm trying to hunt down some more information on this -- hope to have some more information up ont he site in the next day or so.