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Veteran Advisor

Re: Strong Cash Rental Auctions In Iowa

Hey mike I heard that! LOL

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Veteran Contributor

Re: Strong Cash Rental Auctions In Iowa

I talked to a friend of mine that was present at the auction. He said  he knew one of the tenants ,who farmed 900 acres of the tracts for rent ,bid on every piece that he farmed. He ended with 2 small tracts totaling 110 acres ouch!!!! I guess one has to realize you can't get married to rented land and it looks like in the future you'll have to pay to play.

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Advisor

Re: Strong Cash Rental Auctions In Iowa

  Proven again and again farmers are their own worst enemy.  Let greed and jealousy prevail.

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Advisor

Re: Strong Cash Rental Auctions In Iowa

Don, following the auction, I did visit with a couple of my landlords. (proactively i hoe)

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Advisor

Re: Strong Cash Rental Auctions In Iowa

Jeff, my take on this is the psychology remains.  These auctions were only a matter of time before they would become reality in Iowa.  How it effects my farm in another state is still unknown.  I do know that a few years ago, a buyer from Iowa came to Kansas and thought he'd gotten a steal by bidding and getting the nod for a piece of bottom land for $2,400/acre, when the average auction price was much, much lower by nearly $1,000/acre.  I hope the drought in 2011 has tempered some of that fever, however, since then, land values have exceeded $2,400 by $500 to $800.

 

I think no matter whether it's $500 or $12,000, the phsychological effect remains.  The fear factor is present, either I get in now or I will not have another chance to farm that land for another couple years.

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Senior Advisor

Re: Strong Cash Rental Auctions In Iowa

Farmers are just competing the only way they know how. Expansion has been grilled into them for decades as if expansion is the only way to success. In reality efficiency and frugality may be the answer. The idea that the opportunity simply calls for too much risk for the ptotential rewards.

 

More acres bigger equipment has been the siren song out of the colleges and the farm publications. Perhaps the expansion should have been done yesterday instead of today.

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