$21,900 per acre

A new record has been set for the price of farmland in Iowa. How can buying 80 acres for this much even be profitable? Insane.


http://www.dollarsanddirt.com/2012/10/26/21900-iowa-farmland-price-record-auction-sioux-county/

 

Wow, farmland around here is still around $2000 an acre. Although only 3 hours away it is going for $5000. How in the world can you make any profit on land buying it at $21,900 an acre? Crazy

 

It couldn't have been bought by a farmer, they are all poor.

 

Pretty good explanation by the auctioneer in the comments section....

 

There was a 250 acre farm right on the outskirts of Baltimore that I was trying to list once. I suggested we list it for 20,000 per acre. They had the pen in their hand to sign. It was raw land but destined to becoming suburbia. Well anyway, a developer cut my legs out from under me and worked out a development deal with the owners which included houses for he and all his kids. No realtor needed. It would have been a really nice commission. This was back in probably 1989-90

 

The differnece is, that's development land. This is farm land for farming, not development.

 

Tell you what Dan, I am in a good mood today and willing to make you a great deal. I will sell you one of my farms here in Iowa for a 75% discount. That price will include all blinds, stands and an existing deer herd. I might even throw in a tractor and some equipment. Lets make a deal.....

 

What are prices like around you Dave? Rec and farm.

 

Farm ground in my area is normally around $1800-$2000 acre.

 

Good ag ground is 5K. Our area is better suited for cattle. You dont have to go far to start hitting 10K. Average ag ground can be had for 3500. Some of the better rec ground that has been under management and is in the right neighborhood will still bring around 3K. There are deals ($1800) to be had if you snoop around hard. The problem is, all the big hunting land realtors like Whitetail Properties, etc, etc, are here now and they tend to drive the market up some. Even local realtors are putting trail cam pictures with listings. Thank goodness I bought ground several years ago.

 

Some farm land( an 80 all tillable) in central Illinois recently brought 14,000

 

^Yeah. Good tillable land around here is at least 10K an acre.

With the upcoming food shortages, arable land will skyrocket in price.

 

I paid $1,436.00/acre on my bare 80 and that included appraised value of $200,000 worth of timber. It's probably more like $100-125k worth of timber real world.

I feel like I got a pretty good deal.

 

I have heard that in NY it gets to 10,000 quite regularly now.

 

My wife's Great Aunt sold 40 Acres to the Lake Co, IL forest preserve in 2005 for $2.8 Million or a little over $72,000 an acre and it is all wooded and not farmable. The one and only Duke Michaels lives across the street from her now so 21k an acre isn't all that bad

 

I paid 2000K an acre for my 40 acres at auction. I could have gotten it a lot cheaper if it hadn't been for the neighbor

There was a 60 acre piece, solid timber, that sold for about 1500 an acre the week before. Would have loved to have gotten that piece of land, but I'm happy to have what I have.

 

By chance is there an oil or gas play forth coming in this area?

 

Well, evidently that's my problem.....I'm asking way too little for my place!

 

Yeah buddy you need to triple your asing price at least!

 

That's insane. I thought it was bad round here when it hit $12,000 per 1 workable acre.