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BA Deere
Honored Advisor

Re: Lots of reasons

Around here there`s a 240 that I like to use as a yard stick.  It was owned by a old lady that passed away during the 80`s farm crisis, the heir a nephew apparently told the banker to "sell it and show me the money!"...well that`s is industrial strength stupid, the banker pawned it off on one of his golden boys @ $600..no advertising, the farm was easily worth $1,000 even back in `86.

 

Comparable, farms sold for $2,000 15 yrs ago and $5,000 10 yrs ago.  Now, assuming grain prices stay in a range for years, the last sane time to`ve bought that farm would`ve been 10-12 yrs ago.  When it sold for $600 back 30 yrs ago, that was a no-brainer to buy it, it cashflowed from dollar one, a city slicker could`ve bought in and rented it out and made payments.  But there again it wasn`t advertised and it certainly put the "golden boy" on the map....He couldn`t have gotten a better deal had he inheirited the farm from the banker  Smiley Happy

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Red Steele
Veteran Advisor

Re: Lots of reasons

well, BA, I know someone else that "brags" about his financial acumen in buying a prime Iowa farm for $700 per acre from the heirs of a lawyer during the nadir of the farm recession and we both know that wasn't a "fair market price" either. I never got a chance at any "deals" like that....every acre I own was bought paying more than anyone else would pay at the time. Sometimes the heirs get fleeced by a hard sell pitch by flim flam ex-salemen and don't make good choices. If I did a deal like that, I think I would be quiet about it. Speaking of salesmen...doesn't Chris CHristie remind you of an obnoxious car salesman, too, when he gets into that bombastic mode of his? 

 

I actually prefer to buy land at an auction, or from a realtor. Everything is pretty much black and white and no one can ever accuse you of not paying full market price, or bilking any elderly landlord or landlady, and their heirs,  out of their rightful due. Anyone now that pays more than $5000 per acre for prime ground is certainly paying "full price", though. Probably more than full price. I guess I am a little peeved at myself for not attending the local auction where the ground just went for $4550 per acre....it had a few blemishes but they were things I could fix with my arsenol of tools and I could see it producing 200 bushel per acre with a little help. Prices are going south a lot faster than I thought they would...maybe its time to wait another year and see where this thing ends up.

 

 

OKdon
Senior Contributor

Re: Re:You fellers

It's always a matter of timing and having enough cash to do what you do. Some seem to want to consider only from their own perspective with out considering the circumstances of others.

 

Take a doctor for instance that may be quite comfortable with his ordinary income. He can put a significant down stroke on the new purchase and easily make payments with his excess income from practice. He may not even want a good rate of return on the parcel until it has mostly paid for itself even if subsidized by his excess earnings. That is much the same as the old codger that owns several farms and is not doing if for additional income but for the next generation.

 

The result being they own more acres and one farm pays for the next. You might be surprised how many professionals that are doing just that. Fortunately they provide available real estate for renters to rent. Many farmers are expanding the size of their acres simply because they are hooked up with one or more  of those regular buyers of farm land.

 

Try  telling a orthopedic surgeon that he is paying too much for land. He is swimming inmoney and needs a place to park it. Interest rates for cash is horrid and long term the land will be his. So it don't go up 5k per acre it is still his and his families and it will produce lots of income over decades of time.

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OKdon
Senior Contributor

Re: Lots of reasons

Who did you as a thrifty farmer pick up the tab for? I think you are confusing their losses for yours. You didn't pay off their loans and you didn't pay their bills. Where do you get that crap? 

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bruce MN
Advisor

Re: Lots of reasons

Gazing down the proboscis.

 

Legendary.

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Red Steele
Veteran Advisor

Trying to be dense?

if you want to take it up in the forum, bring it up there.

 

Not going to argue with you here....you can just ignore my posts....suits me fine.

 

Have a great day.

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OKdon
Senior Contributor

Re: Trying to be dense?

I guess you have no examples of bills or loans off you paid fo4r other fellows.

 

Kind of makes you speechless when you're caught in a lie!

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Red Steele
Veteran Advisor

Ok...really slow here....   I was /am a member of the coo...

Ok...really slow here....

 

I was /am a member of the coop...with me so far?

 

The coop had lots of deadbeats that didnt pay their bills.....still with me?

 

the writeoffs they had to take took coop equity away from me and other guys that did pay up....any problem so far? They coop had to increase their margins to pay for the writeoffs, too...guess where that came from????

 

Maybe you should have the government manage all of your affairs.

 

Its not a zero sum game...when money flows slowwhere, it is taken from somewhere else...even when  a shiftless government spends more than it takes in...someone in the future ends up paying that difference or the country fails.

 

Hope this lesson helped you.

 

 

 

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OKdon
Senior Contributor

Re: Ok...really slow here.... I was /am a member of the coo...

Why didn't you go to an alternative provider. You can choose to deal with folks  that sell cheaper or buy higher. If your banker charges too high an interest rate change banks. If your coop over charged you to cover losses change coops.  

 

I think your imagining the over charges to pay for business losses. Just like you don't appreciate your low interest rates now. Have you thanked you low rate depositers. I think not. 

 

I think you wll have a tough time showing you involuntarily paid for writeoffs. It's still competition that determines prices and bids. But don't allow me to stop your hyper ventilation over over the 80's dead beats. we have them today in nevada and oregon and your militia types are armed interventionists in those two states.

 

Me? I'm simply glad I didn't need a writeoff to survive.  Nor am I jealous that they got something I didn't need.

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40101444105
Contributor

Re: Lots of reasons

Your Lutheran upbringing sounds very similar to mine, having been confirmed in a small (now disbanded) Lutheran church in Rake, Iowa back in about '67. I have yet to purchase my first lottery ticket....wasted it on farmland instead :-) Always enjoy yours and BA's comments :-)

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