1.2 divided 10 ways is way more than I'll ever inherit.
Farmland
- Thread starter 2forISU
- Start date
1.2 divided 10 ways is way more than I'll ever inherit.
Is this a done deal? I thought it was going to be in any new farm bill (& I thought that hadn’t occurred yet)
Sounds like some people need to be eliminated.
Don’t ever claim inheriting $120,000 as a “problem”
That kind of corresponds with our observations. Single family can get up to 40 acres. I've only done a couple at that size and they are usually either timber or fairly steep rolling hills with some pasture. Of course people do some weird things. What do you do with a 10 acre parcel but they let someone run across the middle with rows of beans? Then you get to the inevitable whole grass farming thing/idea that people in the burbs love to do as a hobby. At what point does that go from weird hobby to money producing farm? IMO not enough income to worry about it most times.
Oh, I don't know. That type of situation causes all kinds of problems. My wife's family is going to get ugly as the last two are in their 90's. They did a relatively good job planning and distributing shares, etc. and its going to be one ugly mess of which I want no part.
Situations like you mentioned would be heavily discounted. From a purchase standpoint farmers wouldn't likely be interested at all. From a rental perspective you are looking at a rental rate discount of about 50% of the going market rent for a small, odd-shaped farm like you mention.
Median and average would vary with location. The new CSR2 bumped everything3-4 it seems. Our worst farm, that I consider lower end ground has a CSR of 72 (old scale it was a 69.8). That's ground is equal to the better stuff my FIL has a county and a half south of mine.
Renting farmland is a really easy way to have a steady side income, and that asset is likely to appreciate.
Rather than sell it, I'd recommend you shop it out ($200/acre is a ways below the market in my area - not sure about the neck of the woods you're in) to a new tenant, or increase the rent on the current one. Collect that steady stream for awhile and when you get farther down the road, you can probably sell it for more than it's worth today.
The landlord doesn't have to have much involvement at all in the process of owning land, other than writing the property tax check.
Exactly. They're the only crops that can make money on our land costs.
Sure, you can grow other crops in Iowa, but if you think corn and soybeans are hard to pencil on land that sells between $8K-$12K per acre, you should crunch the wheat/milo/sorghum/canola/alfalfa numbers.
Appreciate the advice, but selling it right away could buy a lot of top of the line racing equipment.
You could be very right on this or dead wrong, hard saying until we get about 10 years down the road. I will say that many people made those same comments when people leveraged their existing 420 acres to buy the neighboring 80 acres for $2,000 per acre back in the day and those guys look like wealthy geniuses today.
I don't know how many acres you're looking at, but a quarter section at $250 per acre (still pretty cheap rent up here) would be an extra $40K every year.
I also don't know how far that would go for racing equipment.
