A 5% return on this makes for expensive rent

[too close for comfort]

http://www.agweb.com/blog/Your_Precious_Land_217/21%2C900_per_acre_for_sioux_county_farmland/

[R John]

A fool and his money are easily seperated.

[cowfarmer]

Is there anyway a bank would even float 50%, on that price.

[sw363535]

The land bubble and the housing bubble look the same.  Except there will be no bailing out farmland buyers.

[GoredHusker]

I wouldn't say that.  A few years back a CA teachers pension fund bought roughly 8000 acres around here. 

[sw363535]

Gored that is amazing.

Isn't it interesting how many invest their retirements as a group in things they would never as individuals.

California------- there is no limit to the foolish things that happen there.

[read_write]

There was a piece on Bloomberg news at noon today about investing in farmland. They interviewed a guy who manages personal portfolios worth 50 million dollars or more and was buying farmland. He was boasting a 4% yield and mid digit price appreciation for his clients.

[GoredHusker]

The truelly amazing thing is how some of this investor owned ground is farmed.  I can't see how they're making any money.  The only money it would appear to me that they're making is land appreciation.  From the looks of their crops, they'd be dollars ahead to rent this ground out for cash rent.  The management is poor to say the least.  Not specifically on the teacher pension fund ground but some other hedge fund owned ground around.  

[sw363535]

We're up to about 75 psi on the bubble in western ks.  There are going to be some real baths taken.  Some being sold for the third time.  It is the old game of musical chairs.  We will see when the music stops.

[too close for comfort]

At these prices a $50 mil porfolio is only 2500 acres. Wow