| Les NCKS - 1/10/2026 12:44
Had a conversation with an ag real estate broker who was close to our family about this years ago. His assertion then was that land should NEVER sell for a value that will cash flow or "pay for itself". His logic was that EVERYONE should be bidding up until the that point, if it will pay for itself there is no reason not to bid. You have to move beyond that point for the eventual buyer to weed out the other bidders. "Usually" , not always, the eventual buyer will be rewarded as the land value grows and makes the investment make sense.
His logic makes some sort of sense although I think much of the inflation of ground is our own fault. when things get bad enough, there are no other bidders. The adjoining 320 was listed with Hertz in late 1987 for $800 acre. My Dad offered $400. Sellers accepted his offer.They were pretty much forced too, as the guy they sold it to at the high couldn’t make his payment, and let it go back. They didn’t get keep any of the proceeds. IRS had a big bill attached to the farm. He still had a couple nickels in his pocket when nobody else did. This in a county today, that is $600 acre higher average value than Grundy county.
Edited by Boone & Crockett 1/11/2026 07:10
|
Buying land economics
