Just my two cents worth......I keep hearing about all this :cash" being thrown around and these war chests of money. Several things come to mind. One, if farming is soo profitable then why are there subisidies? ANY, period! Next, these folks have to be paying HUGE income taxes. Or, as I suspect is more likely the case, they are cheating on them. I know I've had some pretty good years with very good yields/prices. I'm a average/big size farmer (2,000 acres) in order to not pay the tax man I have bought /made some improvments to the farm that will make me money (tile, bins, not machinery) that didn't leave HUGE piles of cash just laying around for me. Increase in cash...yes. But enought to buy a decent size farm with cash....no. esp paying $20,000 per. My guess is some of these foks are cheating...pure and simple. I have two or three in my area that suspect are doing this. Not saying this is what these folks are doing but ....Just my two cents.
Never thought I would see the day when corn belt land sold for more than my irrigated New Jersey ground. If Iowa ground is 20G than my NJ ground should be 200G. Why do I not feel wealthy?... It looks like we are about to repeat the mistakes of the past. Anyone remember the 1980's land boom and bust. I don't think there will be any money for bailouts the next time around... Bob.
My wife was at a tax school where a farm manager presented who discussed this transaction. He wanted to put it in perspective.
1) owner already owned rest of the section
2) plus, grudge match against a neighbor that he'd lost some land to in an earlier auction
3) he was going to buy that land, no matter what the price
Deal Fell Through?
My BIL, who lives very near this land sale, told me the talk is that the buyer couldn't come up with the money. Have any of you in the neighborhood heard anything one way or the other?
Re: Deal Fell Through?
I wonder what legal ramifications that it poses for the buyer. After all there was a secondary bid available to the sellers.
It's quite dfferent when you buy something with a contingency clause in your bid to an auction where it iis assumed that you know that you will be able to fund your obligation.
Re: Deal Fell Through?
what about all of the "insane" buyers who thought that we use that for a bench mark and run land higher yet? Land around home here, about 3 hours south INCREASED by $1500/acre AFTER that sale! What about all of those guys? That one sale of $20,000 an acre was actually used to justify what some of the ground around home brought. granted someone had that bid at $19,000 but I think it was the $20,000 number that made everyone insane.