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    Sioux County Farm Sale--$20,000/Acre

    Farm sale in Sioux county brought 20,000 per acre on an 80 acre tract. 73 of the 80 acres were tillable, leaving a price of $22,000 per tillable acre.

    Thats just nuts.

    A $20,000 per acre farmland sale! | Des Moines Register Staff Blogs



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    Re: Sioux County Farm Sale--$20,000/Acre

    Ridiculous.

    These land prices are making it hard for a young guy to get started.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    Ridiculous.

    These land prices are making it hard for a young guy to get started.
    No kidding.




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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    Ridiculous.

    These land prices are making it hard for a young guy to get started.
    I'm not in the industry, but I'd think that sitting on some cash for a few years might be a good route. If these prices are financed, there will be some trouble if commodity prices fall. 1980's anyone? It's referenced in the article, and again, I'm not an expert, but this looks like a bubble to me.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by 00clone View Post
    I'm not in the industry, but I'd think that sitting on some cash for a few years might be a good route. If these prices are financed, there will be some trouble if commodity prices fall. 1980's anyone? It's referenced in the article, and again, I'm not an expert, but this looks like a bubble to me.
    I work as an ag loan officer at a bank and farm on the side. I agree with you.

    I am trying to position myself to be ready to make a land purchase in a few years. That's what several of my friends are doing as well, setting some money aside so if it crashes, they are ready.



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    Re: Sioux County Farm Sale--$20,000/Acre

    There are a lot of people paying with cash.

    I think the biggest change will be the big farmers that cash rent nearly everything. Some of that land is going to shake out and become available for younger guys if everything goes to hell.



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    Re: Sioux County Farm Sale--$20,000/Acre

    I'm not sure that we will see a bubble like in the 80s, but a definite correction is on the way IMO.

    I agree, holding cash right now/paying down other debt to improve financial situation is a very smart move right now.



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    Re: Sioux County Farm Sale--$20,000/Acre

    My dad inlaw was the auctioneer on this land auction. Could be a good christmas!



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by JPOP View Post
    My dad inlaw was the auctioneer on this land auction. Could be a good christmas!

    There is a very good piece of land (for SW IA) selling this Sunday near me. 120 Acres. It'll be interesting to see how much it brings and who it sells to. The last piece of land auctioned in our area was purchased by an investor from Colorado.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    Ridiculous.

    These land prices are making it hard for a young guy to get started.

    It has been hard to start for a long time. I can't believe the escalation of prices.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    I work as an ag loan officer at a bank and farm on the side. I agree with you.

    I am trying to position myself to be ready to make a land purchase in a few years. That's what several of my friends are doing as well, setting some money aside so if it crashes, they are ready.
    It will defenitely come down as this is not sustainable long term, however we will never see a 1980's style crash. Too much worldwide grain demand and our world wide reserves are at an all time low meaning commodity prices will stay higher for the foreseeable future. Guys will be able to ride this out for awhile. But most of the ones who are spending the crazy money are the ones who have the money to spend, not finance it 100 percent, so they have a soft landing if it does crash.

    I am sitting on the side watching this right now as well, have tried to buy a couple pieces of ground that I thought would go cheaper but they went just above my comfort zone. There are bargains to be had right now if you're willing to look for them as well as take on a farm that may need a little work.

    Two years ago I walked away from a great farm that the owners wanted 5800 an acre for, man I am kicking myself for that one right now.

    It's crazy times right now and it will level itself back out over time. I am only taking on ground I can rent or custom farm at this time. If a "bargain" piece of ground comes up for sale I will look at it but I think my buying is parked for this year. It is getting frustrating though knowing that most ground auctions is just not an option for me right now.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by FarminCy View Post
    It will defenitely come down as this is not sustainable long term, however we will never see a 1980's style crash. Too much worldwide grain demand and our world wide reserves are at an all time low meaning commodity prices will stay higher for the foreseeable future. Guys will be able to ride this out for awhile. But most of the ones who are spending the crazy money are the ones who have the money to spend, not finance it 100 percent, so they have a soft landing if it does crash.
    They said the same thing before the crash in the 1980's.


    Asteroids are nature's way of asking "How's that space program going?"

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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    There are a lot of people paying with cash.

    I think the biggest change will be the big farmers that cash rent nearly everything. Some of that land is going to shake out and become available for younger guys if everything goes to hell.
    100 percent correct. Too many of the big to huge guys living on razor thin margins with no real assets to fall back on.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by TykeClone View Post
    They said the same thing before the crash in the 1980's.
    Much different world wide scenarios than what happened in the 80's.



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    Re: Sioux County Farm Sale--$20,000/Acre

    Quote Originally Posted by isufan View Post
    I work as an ag loan officer at a bank and farm on the side. I agree with you.

    I am trying to position myself to be ready to make a land purchase in a few years. That's what several of my friends are doing as well, setting some money aside so if it crashes, they are ready.
    I can see a correction, but don't see a collapse. World demand and demographics make me long term bullish on land. So I think you are on the right path. I have also been thinking that there would be a correction for the last 5 years.

    Bottom line, people don't have confidence to put their money in other investments so they like a tangible asset with a decent return (considering interest from a savings account).

    I think we could see a slow down in land sales after the cap gains go back up to 20% (end of this year unless something changes), which may keep prices inflated for a while since we may not have as many sales the next couple years.

    I agree with your other post with renters. Keep in mind, crop insurance takes a lot of the risk out for renters, unless they overhaul crop insurance, people will continue to push the envelope on rents.



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