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Senior Contributor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!

Boy Kay, did you check corn and bean prices from last night? Pretty darn good!!!!~!!!!

Anyway, yes to go to an Inflation cause into your total ROI Ratio is needed to establish an Inflation Adjusted (And you could adjust to 1986 Dol)}ars to keep it very simple}, then your Total Return on Investment Ratio would be locked into 1986 Dollars as mentioned. I have some CBOT Soybean hedges in place and need to check..Will be back in a little while. Yes, soybeans had a **bleep** good night last night!!!!!!

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Veteran Advisor

Who pays retail for college?

No offense, but your kids must have some gawdawful test scores and grades if you are not getting any kind of academic aid.

 

Did the apples fall close to the tree or something?

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Senior Contributor

Re: Who pays retail for college?

No, both kids got scholarships for college, both recieved around $11,000 per year per kid. Sticker price was $48,500 per year per kid. So yes, it dropped it to around $37,500 per year per kid. Public College would probably have been 1/2 of that at the University of Minnesota. And yes, if they went to Public College it would have saved a good amount of coin.But both the wife and the kids wanted to go to Private college. If your marrued, I shouldn't have to explain why I did what the wife and kids wanted to do.

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Senior Advisor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!

Prime Iowa farm land in the early 80's was worth more like $3000 per acre or $3500 per acre. I don't know of any in that $5000 range. To day we hear numbers like $12500 to $15000 but $15k and up is a rarity and $10K to $12K is more likely.  

 

For a more realistic view of farm values go the websites of Farmers national or Hertz and see what their sales histories really are.

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Senior Contributor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

I know of 2 guys who paid close to $5,000/acre, now this is for dirt that had a 92 and 94 CSR Rating. 92 and 94 CSR Ratings are about as good as it get's in Iowa. Anyway, about $850/acre was the low price for 80+ CSR. I know that is a fact since I purchased a number of 1/4 sections for that price. That 80+ CSR Dirt will easi;y bring $12,500/acre today, That's a 15X increase in just 26 years. When you borrow most of this money to purchase a Capital Asset that appreciates at this large of a appreciation rate, any idiot can't help but make alot of money. And this is just for the farmland appreciation. Add in all those years of a good yearly ROI Ratio you can see how many guys did so well.

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Senior Advisor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

Where did you magically come up with the down stroke for several quarter sections? While farmers were hanging on by a thread to avoid bankruptsy, you had the cash to support such an investment. I dug up $25K after a livestock liquidation and make a downstroke on 120 acres. I didn't have available cash for another another and another. It sound like you were filthy rich before you even started buying land.

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Frequent Contributor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

Funny that I heard of a 86 CSR farm selling at auction last week for $8100 and another on here that no saled for $8something.

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Veteran Advisor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

Maybe he got it the old fashioned way.....he married into it!

 

Funny how many guys got brilliant by marrying a successful farmers daughter.

 

Hey, good work if you can get it.

 

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Senior Advisor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

Old saying goes  "  Bigger  the  hat  -  smaller  the  ranch "  probably applies ---

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Honored Advisor

Re: Prices of farmland remain flat/KAY-Average Farm ROI Ratios/Pure Hell!!!!/kraft

The way you guys talk, it is a wonder any girl in the Midwest ever gets married without a deed for a dowry. Is this 2013, or 1913?
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