|
western iowa,by Denison | just late to the party-local land sale 3 tracts around 160a,120,a and a 193 a piece-all bought by farmers -the ones that were buying 2 years ago aggressively did not bid
$4000 acre difference in 1st parcel to 3rd parcel,the 3rd parcel was the best ground. $12,000 something
The top is in -with Biden steering the ship-in 3years we will be at $8000 acre ground vs $16,000 today
at $8000 a acre it still will not work and it will be just as hard to pay for
There is more land for sale then I can remember in are local paper-lots of family ground that those family's were renting -trust's etc of the next generation
There Dad farmed and retired-Dad and mom pass away-45-65 year old kids rent it out and decide there kids will never farm so they sell the farms and enjoy the money in there retirement.
Investors have backed off,the 1st wave of farmers that have been waiting are buying,they have from all cash to 50% downpayment in hand
2nd wave will be the 10-30% down payment guys that will buy at 30% less $12,000 a vs $16,000 a
3rd wave land auction guys have no down payment but will tie 2acres with 1 acre for mortgage $8000 tops
4th wave ground comes down to $4000 some risk a lot-some will not care and purchase
5th wave-ground starts to pop up that was purchased at the high-nothin works and you have a chance to cash flow the ground with a 20 year mortgage
Meanwhile farm equipment dealers raise hourly labor charges to the point that average farmers start wrenching on all there own equipment
equipment becomes stupid high,suddenly dealers start sitting on new equipment that does not sell and the 1980's comes back makin it look like it was a picinic
With interest over 8% it has changed the power of the dollar vs 3% -Farming and feeding cattle year in year out has been 1% return with 2% in the good years
Graduated high school in 1978. Im a child of the 80's-I have seen aa lot-I have only bought 3 80's in my short time and 120 acres of my Dads
 (013 (full).JPG)
Attachments
----------------
 013 (full).JPG (86KB - 257 downloads)
| |
|
Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
