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rswfarms
Senior Contributor

Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

Faust- we are getting richer!!!!!! Much, much, more wealthy!!!!!!!!!!!!!

I will post below, but it came out a little off-center. The results for North-Central Iowa farmland for the time period of Sept/2012 to March/2013 which is the last 6 months. Is a 12.6% increase or $1,148/acre. Pretty darn good!!!!!!!!!

 

So if you take this 6 month increase of 12.6% for another 6 month period which is the end of Sept/2013, it works out to 25.2% or $2,296/acre!!!!!!!!! This projected 25.6% 12 month increase, taking it out to Sept/2013 would be a Sept/2013 overall farmland value of $11,998/acre!!!!!!!!!!!!!!! Boy a pojected total 2013 increase of 25.2%. Yes, this is down from the 2012 overall increase of 36%, but up for 2012 and 2013 years it is 61.2%!!!!!!!!!!!!!!!! Conbined!!!!!!!!!!!!!!! God **bleep**, this is excellent, just God **bleep** Excellent!!!!!!!!!!!!! 

 

 

2012

PERCENT

CHANGE IN

TILLABLE

CROPLAND

VALUES

Past

6

Months

September March September March September March September March September March %

Central 8882 9922 6922 7646 4736 5125 2368 2459 2005 2055 + 10.5%

East Central 8610 9480 6511 7048 4401 4820 2496 2634 2004 2092 + 9.4%

North Central 8554 9702 7022 7882 5208 5809 2201 2328 2143 2232 + 12.6%

Northeast 8863 9720 6912 7575 4816 5144 2509 2563 2095 2115 + 9.0%

Northwest 9356 10656 7672 8485 5361 5842 2341 2578 2338 2509 + 11.6%

South Central 6294 7089 4428 4970 3111 3295 1703 1753 1888 1994 + 11.0%

Southeast 8125 8874 5773 6304 3595 3914 1907 2068 1670 1770 + 9.1%

Southwest 7555 8700 6117 6770 4108 4595 2561 2611 1722 1750 + 12.9%

West Central 9085 10186 6903 7650 4887 5364 2594 2772 1929 2057 + 11.1%

8369 9370 6473 7148 4469 4879 2298 2418 1977 2064 + 10.8%

State

Average

High Quality

Crop Land

Medium Quality

Crop Land

Low Quality

Crop Land

March

Land Classification By Potential Corn Production

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6 Replies
Shaggy98
Senior Advisor

Re: Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

Do we live in the USI? No, it's the USA. Not that Iowa farmland prices aren't important, but we don't need to hear about them every other day.
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rswfarms
Senior Contributor

Re: Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

I believe that Iowa farmland prices and values help determine the land values in the other I-States, don't you think Shaggy?

And a guy that owns just 1,600+ acres will have his land increase in value by $3.9 Million in just 1 year. Of course this is only a paper gain, unless you convert these paper gains into "Real Money" by selling a few acres of your land.

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sdbuck
Senior Reader

Re: Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

Good Lord.....enough already!!!!!  Do you freaking redo your balance sheet everytime a sale happens????  We ALL know by now how much land you own.....and don't care to hear about it anymore!!!!  I'm glad for you....I'm glad for me.....but flipping enough already!!!!!

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rswfarms
Senior Contributor

Re: Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

Yes, I tend to get excited because when I finshed buying most of my farmland in 1989, I was over $1.75 Million Dollars in debt. Plus, almost everyone that knew I was buying farmland in the 1986 to 1989 time period said I was the most stupid farmland owner is the history of Iowa. Paying around $1,000/acre in 1986 they said I overpaid by $750/acre on this $1,000/acre dirt, that it was only worth $250/acre and I would lose everything and be bankrupt in 3 years.

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Faust100F
Advisor

Re: Iowa Farmland up in Value for the last 6 month's- 12.6% Sept/2012 to March/2013/Faust

RSW - is this from the Realtors land Institute . . . they usually publish in September and March?  Now if you would have sold that 40 and bought that quarter look at the ROI you would have realized if you would have purchased it in September.  

 

I think it is great news, Even the land here in the rural backwater went up 11% in six month.  Kinda interesting, a 240 acre patch of converted CRP put in beans two years ago and in corn last year had a rent of $150 acre rent on it, this year the new rent is $250.  

 

Sooooo even third class (poor 50-85bu.) crop land is now reaching historical or should I say histerical highs.   It is all about farming the federal crop insurance program.   Great post. I checked ponds that were almost dry last fall, they are now all full, and tile lines are dripping or running a very small stream.   Looks like Southern Iowa may be the garden spot this year in Ioway!  lol.   Adios Amigo. John

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rswfarms
Senior Contributor

Re: Iowa Farmland up in Value for the last 6 month's- 12.6%/the Realtors land Institute Survey

Yes Faust it is from the the Realtors land Institute. 

It is from the time period Sept./2012 to March/2013. As mentioned, a 12.6% appreciation rate for just this 6 months. And if it is a good job of predicting the next 6 month time period (April/2013 to Sept/2013), we are looking for a 1 year appreciation rate at 25.2%. Pretty darm good, add the 36%, 2012 total rate, for the 2 year time period of 2012 and 2013, a 61.2%. Then add in the 8-10% ROI yearly rate for growing corn. Well, that's a 2 year total combined total of appreciation+Corn ROI of 82.4%. Can you believe that? It sure as hell beats the SP500 Index Fund ROI Two-year rate doesn't it?? It actualy beats the SP500 by a huge, absolutely huge, amount of money.Yes, we beat the hell out of the stock and bond market for the last 2 years. We made a great decision keeping all our families wealth stored in farmland and growing corn.

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