$500 cash rents?

[Mizzou_Tiger]

shaggy...........you shouldnt nor need to be impressed..........

he is talking about a bunch of bold type bullet points, that someone else prepared...........he has no dirt under his finger nails.........

case in point.........they had to redue the CSR system................

here is a link to a summary of both..........there is more info out there, just go to ISU and do some looking........

http://www.ucs.iastate.edu/mnet/_repository/2012/soilmanagement/pdf/Burras.pdf

also.............as proof MR. SPANKY RSW doesnt have dirt under his finger nails............look at page 9 in the link.........you should see Lee county down there in SEIA........has a CSR of 47.8.............I have seen 260 bushel corn and 80-90 bushel soya come off of 80's and 160's............and its been within the last 5 years............

CSR, is nothing more than a fools gauge of dirt............if you know your soil classes and textures, you can take 60 or 50 or 40 or even some 30 CSR ground and make it print 200 bushel plus on the maps...........just takes good weather and management.........you can also take 90 CSR ground and make it print sub 100 or even ZERO's with the wrong weather and management............

Course MR SPANKY RSW doesnt know anything about managment...........otherwise he would farm it instead of having it custom farmed or rented out............

[HawkPride]

Rsw my family has bottom ground in sw Iowa with a csr in the 80s. That doesn't make it 12000 dollar ground. If you think it does I bet we could work out a deal. You keep showing your ignorance.

[Shaggy98]

Thanks MT for clearing that up.  If my college soils teacher would have read your post, she would have you writing additional reports as well as in the lab doing soil sample tests.  I bet she told us about a 1000 times that soil was in the field, when it was misplaced and drug into the kitchen, that is when it became dirt.  DIRT IS TRASH.  LOL

[rswfarms]

Well shaggy, be very, very, nice to your wife's family. 2,000 acres of NW Iowa farmland times $12,000/acres is over $24 Million dollars that they are sitting on, a pretty good chunk of coin. Yes, be even nicer to your Father-in-Law and maybe he will give you just 1,000 acres of his Iowa farmland, which is worth over $12 Million dollars today. On CSR, I am sure your Father-in-Law is aware of how important CSR Ratings in Iowa are, this is how part of the farmland overall value is determined. A 50 CSR farm is only worth around $7,500/acre, while a 85 CSR farm is worth $12,750/acre. A huge difference, also tiling/drainage is right behind the CSR rating in the importance of establishing a selling price of the farmland. I can not over-state the importance of tiling and drainage in Northern Iowa farmland values. You can have 85+CSR Rated dirt in Iowa that will do 220+bu in corn yield if it is well-drained, but if it lacks good drainage, in a wet year if the soil stays water-logged for weeks at a time, your corn will turn yellow and suffer as much as a 80 bushel/acre yield loss. So the overall farms CSR rating and the tiling/drainage are probably the 2 most important variables there are that determines a farms productivity, and hence it's overall selling price to a Iowa farmland investor.

[rswfarms]

Well Tiger, if a farms CSR rating means nothing, why do the Real Estate agents that sell Iowa farmland even put it in the sales materials when they have a farm for sale? And why do the banks always ask for the farms CSR value when they are deciding on how much money to loan on an Iowa farm for a loan, if the possible buyer needs to borrow money to buy a farm? Why does Iowa State University have 100's of articles on CSR ratings and also factor in each Iowa counties CSR average in there yearly farmland survey. I can tell that you lack knowledge if you think 30 CSR Iowa dirt will do 220+bushels/acre in yield. And why is the average price of farmland over $10,000/acre in Northern Iowa, while in south-central Iowa near the MO border, the Iowa state farmland survey says this land is worth only $4,300/acre. If CSR didn't matter, why in God's name do people buy Northern Iowa farmland for over $12,000/acre, when they can go to south-central Iowa and buy 40 CSR dirt for only $4,300/acre. And since you say a 40 CSR Iowa farm can produce the same as a 85 CSR in corn yield, why do people spend $12,000/acre in buying 85 CSR dirt. The way you make it sound, anyone buying or owning North-Central Iowa farmland is an absolute idiot for spending $12,000/acre, when they can buy 40 CSR dirt in Iowa that produces 200+bu yield as you say. If that is the case, most Northern Iowa farmers must be absolute idiots then, right?

[rswfarms]

If I can buy 200+bu Iowa dirt with a 40 CSR rating for $4,300/acre, I would sell all my 1,500+ acres of Northern Iowa farmland for the going rate of $12,000/acre, and take this $18 Million dollars, come to South-Central Iowa by the MO border and buy 4,200 acres for the $18 Million dollars. I would have almost 3x the amount of farmland that I have northern Iowa. I would have to be a real idiot not to sell all my 1,500 acres in Northern Iowa and in turn use the money to buy 3x the amount of southern Iowa farmland. Tell me, why in the world that all Northern Iowa farmers don't do this? Is there a reason that northern Iowa farmers don't buy all this southern Iowa, 40 CSR dirt that does 200+bu for a corn yield? Guess all northern Iowa farmers are just idiots then, right?.

[rswfarms]

NABFarmer- your welcome. If I remember this figure correctly, the 50 year historical Return on Investment Ratio for Iowa farmland is in the 4 to 6% range, and the 50 year historical Iowa farmland appreciation rate is also in the 4 to 6% range. So if you combine the 50 year Farmland Appreciation Rate and the ROI figure of 4 to 6% on the corn revenue, you are in for a total overall ROI ratio in the range of 8% to 12%. So you will not get wealthy overnight being an Iowa Farmland investor, but for the long haul, farmland should do ok, and again, this is for the long-term, not for the short-term. But this is the same for many other types of investments too, if you stay in for the long-term you will probably do ok, than trying to do get in and out of the farmland market, and the same as for the stock market. BTW- long-term, if you Custom Farm your ground, you should do better than the long-term Stock Market return by 3%., so it is good to know that farmland is better than the stock market, and again this is based on the 50 year historical data. This shouldn't be taken as a future prediction of the farmland market vs the stock market. It is just an indication of POSSIBLE future ROI/Return on Investment numbers.

[Shaggy98]

Correction RSW, they recently sold 50 some acres for just under $800000.

FYI, I am not entitled to this land nor do I deserve it.  I haven't worked 1 hour up on their land so what makes you think I deserve it?  They've got many close neighbors and friends that have more sweat equity invested than me.  I'm not chasing the almighty $ like some on this website.

[Mike NCIA]

Taking this back to the original topic, a 417 acre farm in Fremont co., IA rented for $615 in November 2012 for a 2 year lease:

Cash Rent Auction 1170.2  FSA cropland acres

2 year leases,  5 Tracts, Fremont County Iowa.

These farms are RENTED!

Tract 1 @ 195.80 acres Rented for $545 per acre
Tract 2 @ 158.10 acres rented for $470 per acre
Tract 3 @ 296.10 acres Rented for $520 per acre
Tract 4 @ 95.30 acres Rented for $485 per acre
Tract 5  @ 416.60 acres Rented for $615 per acre

http://alhughesauction.com/auction-details?auction_id=67

[Mizzou_Tiger]

RSW..........you find me some 4300 ground that has a yield history in SIA...............and we will talk...........I will save you the trouble..........add about 3K onto that...........then you might find some..........

I dont think you understand that CSR is just a number..........thats it...........and a dated one at that..........it does not guarantee anything...........its just a number..........its no different than talking Class A or I soils versus B, C, II, III, etc............

We have ground in MO that would be the equivalent of 30 or 40 CSR ground that is selling for 6 and 7K.............and it made less than 20 bushel per acre this year, some zeroed out............but a few years ago pushed 180.............

so 80 CSR ground for 12K that was bought for 1-3K/acre that can do 220.............or 40 CSR ground for 6K that was bought for 200-400/acre that can do 180...........

NIA ground might sell for more than SIA ground...........doesnt mean SIA is cheaper...........I challange you to snoop around in Lee County IA..........its CSR is what mid-40's..............bet you cant find a piece of ground for less than 10K with a yield history............

again, you are doing nothing more than reciting a book..........zero experience..........