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Senior Contributor

Re: Please get me up to speed on South America/Iowa Guy 1-Up to speed

Most of the livestock we have in North-Central Iowa is hogs, very little cattle, but we do have a few chicken plants. When I can get it, I try to buy ckicken manure since it is better than the hog manure I put on my corn farms. I am part owner of 3 large Hog buildings and have 100% of the manure rights on the hog operation.We put on 5,000gallons/acre of hog manure. Seems to work well for nirtogen, but we always get the manure tested before application. Anyway, you are a Southern Iowa guy, Faust that posts on here is also a south of I-80 guy too, he would like to talk to you for sure. He owns many southern Iowa farms. Myself, all but 3 farms are located in North-Central Iowa, and the other 3 are located in Eastern Iowa.

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Contributor

Re: Please get me up to speed on South America/Iowa Guy 1-Up to speed

Thanks, Faust !  

 

After reading Jim Roger's comments last week, I thought I'd miss out on another big leg up with land.

 

It has been good to see people I know who struggled and stuck in through the 80s and 90s finally get some prices and land appreciation.  

 

I haven't exactly set the world ablaze financially and have to do all I can to be in a good position.  I've been a good worker but am not really a leadership type in an organization setting.   I have my retirement money mostly in global stocks and real estate funds and some TIPS - I hope these can give me some hedge against further land gains.

 

Appreciate the comments.    Drinking a Grain Belt here.

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Senior Contributor

Re: Iowa Guy-Update

Sounds like you are doing good money-wise Iowa Guy 1. Myself, I just happened to get very lucky farmland wise in historical trends to be in the right place, at the right time. It isn't often that you can buy farmland and have the crop revenue also make 100% of the mortgage payment to the bank. It was the 1986 to 1989 time period that you could buy high quality Iowa farmland for a $1,000/acre and have the total crop revenue also being able to make a 100% of the mortage payments. Looking at the historical ROI figures since the 1930's, there has been very little time periods that this has happened. If you were thinking about starting an Iowa grain farm operation, you couldn't have picked out a better time period than 1986 to 1989 to do so. Seems like building up your net worth with farmland mainly depends on how lucky you were in timing. So anybody buying farmland in the 1986 to 1989 were just plain lucky. If anyone tells you different that timing your farmland purchase was not needed, they are just trying to give themselves a pat on the back, they really were just plain and outright lucky.

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Highlighted
Contributor

Re: Iowa Guy-Update

What a great time to buy farmland.  You were wise to do it.  

 

Can tell from some of your other messages that you are really good with the numbers side of things.  I love ag but I love to make the economics work, too.   Not really interested in doing it just to break even.   But not needing to make a killing, either.

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Senior Contributor

Re: Iowa Guy-Update2

Yes Iowa Guy 1, between 1986 and 2013, the only time period that had a negative ROI on land appreciation was 1999. In 1999, Iowa farmland had a negative ROI of 2%, otherwise every year showed a positive ROI. You could not lose money in any other farming year. Almost a complete "No Brainer" on buying farmland during 1986 to 1989..Yes, you probably could not lose money. I always wondered why no one else bought dirt during this time period, the numbers were there for everyone to see. Well, I guess one problem was that many farmers were very short on cash for the downpayment. As you know, Cash Flow is KING during this 1986 to 1989 time period, guess everyone was just hanging on to beat the REPO Man.

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Senior Contributor

Re: Farmland Ceiling Raised…Again/Faust

Was this land passed on to the heirs with no taxes being paid. You know something calles "Step up in valuation ."

i am sure that you will use this just like i intend for my girls to do

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Senior Advisor

Re: Farmland Ceiling Raised…Again/Faust

John  Pocahontus was the county with all the drainage wells that the state closed some years back. Just think of tiling surface water into the aquifer!

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Senior Advisor

Re: Farmland Ceiling Raised…Again/Faust

Now according to the Hefty brothers, water from tile is as Eco-friendly is any water can be. Coming from a desert farmer, are their statements correct? If so, what is wrong with running it directly to an aquifer?
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