Joe Burrow and Others purchasing Iowa Farm Land

[RezClone]

I don’t know of any tax credits that apply to individuals or corporates purchasing ag property. Tax exchanges for like properties are common thou which is a set amount of time that an individual can take the proceeds from
an ag property sale and reinvest that money in the purchase of another ag property without paying capital gains on the initial sale or income tax.

Yeah spring and fall installments totaling 350ish. Sorry for the poor wording. And also I just meant tax incentives for farming in general as it relates to overall tax burden or ROI, not specific to capital gains or property tax.

That's good info. I'm certainly no expert in owning much of anything in general, let alone farmland lol. So I humbly yield to you.

 

[swiacy]

Yeah spring and fall installments totaling 350ish. Sorry for the poor wording. And also I just meant tax incentives for farming in general as it relates to overall tax burden or ROI, not specific to capital gains or property tax.

That's good info. I'm certainly no expert in owning much of anything in general, let alone farmland lol. So I humbly yield to you.

Ag land values are stupid high now in a perfect storm of several factors. The Fed’s raise of interest rates to “control” inflation will have an instant impact on residential RE sales in the negative but not so much for Ag. Farmers will not hesitate to add acres that are adjacent to existing owned acres as that farm may not be on the market again in his lifetime or ever. The reality is that today’s farming requires access to more acres and the only way to guarantee the needed acres is to own it. Cash rent is competitive and not a known entity.

 

[Al_4_State]

I was fortunate enough to be the agent in that sale. Kurt was first class in every way. If I recall it was just under 1500 acres.

After I posted that I went to the Allamakee County Beacon site to make sure he still owned it, and yeah, there's about 1500 gross acres owned by Warner Enterprises between the Sixteen and Ion bridges.

 

[exCYtable]

O.K. but am I the only one who thinks she is not very attractive? I just cant get over her lips. It could also partially be that her character on Yellowstone is a very rough one.

Same

 

[dafarmer]

Just saw this on twitter thought I would throw it out there. I don't live in Iowa anymore is $48k an acre a realistic price?

Joe Burrow, Blake Griffin, Others Purchase First of Five Farms

Patricof Co is coordinating a farm purchase by a group of roughly 25 athletes for $5 million. The group will eventually buy four more farms.

frontofficesports.com

And for any farmers is a single digit return realistic here? A $5m purchase at 1% is a $50k per year return. Thats a hell of a return I would think on 104 acres of land. I guess maybe they will take land appreciation into account as well??

Didn't pay $5million for 104 acres, read the total article. 320 near me with a CSR of 90 has a bid of $15,000 an acre. Alot of land being bought by investor money. Also with new tax laws in Iowa, they are talking that land rents are not going to be taxed, which I think is dumb.

 

[NATEizKING]

Got a text today from someone in VA looking to buy land from David in Johnston County. $45k for .94 acres. Problem is I'm not David and have no land in Johnston County so David if you read this send me a dm.

 

[mred]

Kurt Warner owns land on the Yellow River between Volney and Effigy Mounds. Absolutely gorgeous property. You can canoe through there.

After I posted that I went to the Allamakee County Beacon site to make sure he still owned it, and yeah, there's about 1500 gross acres owned by Warner Enterprises between the Sixteen and Ion bridges.

Make up your mind. Is the land gorgeous or gross?

 

[BWRhasnoAC]

I was fortunate enough to be the agent in that sale. Kurt was first class in every way. If I recall it was just under 1500 acres.

That's a lot of land. Is he renting it to be used as farm land or is it just for play?

 

[BCClone]

Didn't pay $5million for 104 acres, read the total article. 320 near me with a CSR of 90 has a bid of $15,000 an acre. Alot of land being bought by investor money. Also with new tax laws in Iowa, they are talking that land rents are not going to be taxed, which I think is dumb.

I remember reading something about that but if you take that option you lose stepped up basis or you pay regular taxes on any gain; and you had to own it and farm it for ten years or longer I believe. The regular investor will not be able to do that.

 

[isufbcurt]

I remember reading something about that but if you take that option you lose stepped up basis or you pay regular taxes on any gain; and you had to own it and farm it for ten years or longer I believe. The regular investor will not be able to do that.

Supposed to only apply to INDIVIDUAL RETIRED Farmers

 

[intrepid27]

Cal Eldred bought a small farm in Northern Cedar County and turned the whole property into pheasant hunting habitat. This was a long time ago and it is a pretty crappy piece of ground so he probably didn't spend much. I appreciated it because I had permission to hunt several pieces nearby and there were always plenty of birds.

 

[cycfan1]

From the article.
The world changed. Prices didn’t necessarily go down, but valuations should have, so we held back. It was the right time in the cycle to put money into this asset class.”
By mid-November, the market turned more favorable, and the firm is preparing to announce its biggest deal ever, which will be with a “known brand in the alcohol space.”

Curious to what they think changed in mid-Nov to make the market more favorable. Unless its referencing their secondary project and not the land buy. Seems like odd move for athletes to jump into for at best a 3% return when lot of risk free assets paying nearly double.

 

[BCClone]

Supposed to only apply to INDIVIDUAL RETIRED Farmers

Isn’t there something that makes it an either/or type situation? I know if I lose stepped up basis, I will pay the 3.9% income tax.

 

[cyputz]

Reminds me of former Bills FB player (Phil Hansen ??), purchased thousands of acres around Oak, ND. He was from the Oaks area.

 

[wxman1]

Timely study.

Expert: Iowa farmland prices becoming too high to make a profit

The average price of farmland in Northwest Iowa is about $4,000 more than the rest of the state.

www.kcrg.com

 

[Tri]

That's a lot of land. Is he renting it to be used as farm land or is it just for play?

That was along time ago. At least maybe 15 years+. The farm was basically 1/3 timber, 1/3 rotational fenced pasture and 1/3 cropland. Showed it once on horseback. He rented the cropland and pasture and hunted the timber. Yellow River went through it with a nice cabin on a cliff looking over it. Absolutely gorgeous property.

 

[NWICY]

Timely study.

Expert: Iowa farmland prices becoming too high to make a profit

The average price of farmland in Northwest Iowa is about $4,000 more than the rest of the state.

www.kcrg.com

Manure rights and using paid for ground to make it pencil, it'll make a profit or the NWIowa Dutch wouldn't be buying it. Also a lot of California families move into that area when you sell your ground and water rights out there you have a lot of money to reinvest somewhere else.

 

[Stormin]

I remember reading something about that but if you take that option you lose stepped up basis or you pay regular taxes on any gain; and you had to own it and farm it for ten years or longer I believe. The regular investor will not be able to do that.

Have it custom farmed. Landlord is operator. Just hires all operations done custom by a local farmer. Hire a Farm Manager or put an ad out stating there is a farm available for custom farm operation. Why can’t an investor do that?

 

[BCClone]

Have it custom farmed. Landlord is operator. Just hires all operations done custom by a local farmer. Hire a Farm Manager or put an ad out stating there is a farm available for custom farm operation. Why can’t an investor do that?

Because one question that always gets asked is how much of you income comes from it and how much labor you invested in it. Not enough and it doesn’t fly.