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Senior Contributor

Land price comparison

3 questions. Elaborate as much as you wish.

1. What is your general location, and the most recent land sale data from that area? Location, date, price. No 2nd or 3rd hand stories, only bona fide data.

2. Given that $ amount as proven, what would you consider to be a bargain price?

3. If a good square 40 came up right next to one of your farms or home place, what would you pay for that piece of dirt?

Thanks in advance.
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22 Replies
Senior Contributor

Re: Land price comparison

I'll start

1. NC IN. 11-2011. 77 acres sold for $12,400 per acre. Not the best soil, but pretty dang good. Also an 80 sold within a family last month for $6500 just up the road from that one.

2. A bargain to me would be $8000 or less for a similar piece today.

3. If it were next to me, I'd try my hardest to get it, but would throw in the towel at $10,000.
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Senior Advisor

Re: Land price comparison

$10700 for 81 CSR land about 5 miles from my nearest farm in north central iowa.

 

No, I wouldn't consider that a bargain price but ask me again 5 years from now.

 

An adjoining 40 acres, I would pay $2500 per acre. I figure if I start low enough I can always go up. Besides if I said $5000 you would offer $5100. If it is an auction, I'm not going to disclose my maximum bid ahead of time. That would be foolish.

 

You're welcome!

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Senior Contributor

Re: Land price comparison Gotta go with Kraft t

I would have a hard time getting up to the ranges you're talking about. But Kraft t is right five years from now it might be a steal. I just have had some experience in the past with deflation and it wasnt pretty, worked two jobs for ten years to dig out of the mess.

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Veteran Contributor

Re: Land price comparison

9750 for a 78CSR farm in Nothern Iowa in Jan. It was on my appraisal sheet on a farm I refinanced. If it was me I'd probably be prepared to go to 12000. I don't think it would go that high because with big equipment its hard to justify. If its next door or adjoins another farm you own its worth it. I've got ground free and clear so it would be an easy deal to swing.

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Advisor

Re: Land price comparison

I purchased a 81 csr farm the last of sept for 8300. I was satisfied with that. There is another farm near where i farm that i've admired for 30 years. It will be sold in the next year. I will be interested, but foolish for me to say here how high i would go.. Heard yesterday about some farmland at cash rent auction near gowrie iowa that rented for $525/acre for 2 years. My question always is...is that for the rent or the deed??Going to mason city to watch the rent auction, for franklin county land, on  saturday. won't be bidding, just enjoying the drama!

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Honored Advisor

Re: Land price comparison

 swKs marginal acres with good water,

Irrigated sold 800 ac( 600 irrigated) at 3200 --public auction.

2--bargain price----1500-----water was overvalued

 

3.--600 plus water value----------------------diminishing water has to be considered and right now outside and cheap money is bubbling the area.

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Senior Contributor

Re: Land price comparison

Yeah, obviously if folks here know your real identity don't state your price for adjoining. I assume all would hang a premium on ground like that. I had figured about a 25% premium or so for adjoining, but that's just me. It's nice to remain anonymous to ask general questions to members that would make your neighbors raise an eyebrow at you. Are rent auctions still common out there? Dad says they were here decades ago, but I have never seen one in my lifetime. It's all hush hush private dealings here. I'm thirty-something.
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Veteran Advisor

Re: Land price comparison

SWH I bought an 80 a couple years ago when the grain and hog market had tanked for $2,600 an acre..... That same piece of ground would go much higher today. Ground in my area or a couple hours north of your location doesn't come up for sale or auction much.... Either it stays within the family or is sold privately. My wife is from the North Manchester/ Wabash area and I've seen corn look just as good there as corn grown in Iowa or Illinois so I would imagine the price for ground would be similar. The only difference between ground in Iowa and central Indiana would be the outside investors. An investor that isn't a farmer and don't know better only knows that Iowa dirt is consistently the best ground in the world.... With that said there seems to be more fanfare with Iowa ground..... Im surprised their isn't more land rent auctions here and there after last years big land rent auction on a farm located in  Hillsdale county Michigan and I believe Fulton county Ohio that brought $360 an acre for pretty marginal ground. If you are looking to buy, now may not be the greatest time unless the ground is right next to your home farm... Everybody is buying since interest rates are low and crop prices are high. IF we produce a monster of a crop this year and the corn price is $3 by harvest I would imagine you see land go a little cheaper..

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Senior Advisor

Re: Land price comparison Gotta go with Kraft t

I had to chuckle a bit on that one. An experience like that tends to make one more cautious.

 

Of course the price of land is important but even more so whether you can pay for it.

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