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Southeast Colorado | This is on one of those silly private auctions. Bidding was supposed to be done May 1st. Obviously the owner is not satisfied with the price so the realtors keep dragging this thing out. I was the high bidder all weekend and then this afternoon they call back and had a bid for $5/acre higher asking me if I want to bid again. This is a 320 acre patch with a few small irrigation wells that haven't been run in a few years. A year ago this patch would have brought at least 25 to 30% more than where it is priced at now. It still borderline cash flows on its own at today's prices and NO down payment.
Through the years I feel I've gotten older and wiser and I really do have plenty of land to farm right now. That doesn't keep me from wanting to own more if the price is right. I was really surprised when I called in to see where the bid was sitting last week because I expected the price to be out of my range. Now I'm struggling to figure this one out. If grain prices go down for several years it would be a burden that I don't want. If grain prices rally a buck from today it could almost be a home run..............especially if the value of the land jumps right back to where it was a year or two ago. It seems crazy to not keep bidding.............what say you guys? I think I'm mainly talking to myself...............and just need a little feedback. | |
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Bidding on new land and can't decide when to stop..........it still seems cheap!
