Posted 11/29/2015 21:55 (#4927862 - in reply to #4927825) Subject: RE: Degenhardt Land Auction, Southwest Illinois
Southwest Illinois
I think the point was that there is still a lot of cash on the sidelines, and has been for some time. A lot of these same guys watched investors and 1031 money run prices up from 2000-4000 an acre to somewhere in the 6000-8000 range at which point farmer buying pushed prices up another 40-50%. So you have some of these guys who didn't have 1031 money and thought it got to expensive to buy when it pushed and went clear through the 10K mark. Many of these folks made a lot of money the last 5-10 years on the ground they maybe bought 20-40 years ago. They see price pull back and are now spending some of that cash on dirt. We are not talking about young guys, or highly leveraged operations, but your 55 to 65 year old farmer who has a fair bit of ground paid for and probably has rented ground on at least profitable terms. I like to compare it to the guy who busted his butt for 30 years and has some money saved up. He has always wanted a classic car but never had the money. He goes and buys what he has always wanted not giving much thought to if it was a prudent investment or not. But it's his money and he is happy and could care less if his car goes up or down 30% in value.
Degenhardt Land Auction, Southwest Illinois
