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kraft-t
Senior Advisor

Made a trip down I-29 from Souix City to Omaha a week ago

I had to admire the fields between the missouri and the Loess hills. Some beautiful fields and look to be incredibly fertile. It is my impression that it must be approaching paradise. Is there anyone in the know on here that can give me positive reinforcement or can you bust my bubble?  Cost per acre and yield potential?

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6 Replies
old man
Senior Contributor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

Yes, I can. We are 15 miles from the mouth of the missouri before it enters the mississippi.You will find no more fertile soils anywhere in the world. A few sandy, droughty areas and too south so  sometimes we do not have as dependable rainfall.But we need very little fertilizer other than nitrogen. Our main trouble is flooding from the Mo River and the Corp of engineers will not let us have more than 20 year levee protection.I have nephews that on the 500 year floodplain will give anyone in the National Corn Growers yield tests competition for the top national yield. We haven't tested ours yet but expect over 250. I have 100 acres that has never had a crop failure. I have heard of 280 and 290 bushel seed yield trials and 67 bu. beans. They did not have a 6 inch rain like we did at planting time

I have been thru the area you mentioned and our soils are just as good as theirs.

 

There is no nation, cvulture, or civilization in recorded history that has not survived if it did not take care of it's soils and the avbility to feed it's people

 

A starving man will follow any despot for a crust of bread to feed his family

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old man
Senior Contributor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

And I have never heard of the prices that RSWfarms always talks about

 

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kraft-t
Senior Advisor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

Old man, if you go to web sites of some of the more prominent land sellers/managers they usually have alisting of sale histories for the last couple of years. Farmer's National company is one and I beleive hertz is another. Of course prices vary from state to state but you can examine the sales in most any state in particular Iowa and Illinois where their exceptional results have been recorded.

 

BUt exceptional does not mean average because their may be specific causes for certain abberations. $15K sales are a rarity but they do happen. In fact we had one sale in souix county in the $20K range.

 

When they talk about CSR there are few farms with an exceptional CSR ratings. Most farms, mine included, have exceptional soils mixed with varing qualities of soil from good to not so good. Most times they rationally calculate the average CSR rating and exceleent farms may rate a bit above 80 CSR but most average out to lower than 80 csr to somewhat lower than that number.

The odds of my 82 average CSR farm bringing 15K per acre is pretty remote. Oh it might bring $13.5 or $14 grand per acre but it will require two or more really determined bidders bring the $15 K figure.

 

So if I were going to calculate my net worth, those acres would be evaluated at somewhat less than that. If I were to borrow against it I would rely on a realistic appraisal. I would not want exaggerate to either myself or my lender. It's a horrible mistake to lie to yourself!

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old man
Senior Contributor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

I have heard of $30,000 an acre for building a huge housing development. The developer has declared bankruptcy. I think that it is a sin to use exceptional land if others are available

As far as calculating net worth, that only means something if you were selling

And I did not say that all my land is exceptional, only a small percentage

 

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Shaggy98
Senior Advisor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

I've got a few acres that are just down right worthless as they sit. If some contractor would put a little time in them, I imagine they could be turned into a development site. $30,000 would probably get them purchased, but I'd probably need to get permission from the boss. LOL
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old man
Senior Contributor

Re: Made a trip down I-29 from Souix City to Omaha a week ago

And mine is not located where it will ever be developed for anything other than agriculture. And also the company that paid that money folded and I doubt that these people ever got their money

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