Used prices going up, up, up - Tractor Futures!

[MAX-24-Dean]

Real property and land are two great long term investments. As we see now when inflation goes extra crazy, those assets are largely protected from inflation.

My financial advisor showed me a 50 year graph on the stock market vs owning farm land. The farm land out performed the stock market. Investing in real property is smart economics in my opinion. Investing in farm acreage is even better.

 

[Cahaba Valley Farm]

My financial advisor showed me a 50 year graph on the stock market vs owning farm land. The farm land out performed the stock market. Investing in real property is smart economics in my opinion. Investing in farm acreage is even better.

The only problem is buying land does not give you passive income like a rental property or dividend would.

 

[bmaverick]

The only problem is buying land does not give you passive income like a rental property or dividend would.

Farm land is often leased/rented out for crops in the growing season and for a small fee during the hunting seasons for those that want prime locations.

There is 97 acres near my town. The land butts right up to the city limits. The farm owner/developer has it up for sale as 1-acre residential lots. At today's prices, that 1-acre is like gold for his retirement. 88 homes will go in there. Yes, land indeed is an investment.

 

[Cahaba Valley Farm]

Farm land is often leased/rented out for crops in the growing season and for a small fee during the hunting seasons for those that want prime locations.

There is 97 acres near my town. The land butts right up to the city limits. The farm owner/developer has it up for sale as 1-acre residential lots. At today's prices, that 1-acre is like gold for his retirement. 88 homes will go in there. Yes, land indeed is an investment.

Yeah but how much money can a piece of farmland fetch for farming purposes like that? A few hundred dollars a month?

 

[BnRidge]

Yeah but how much money can a piece of farmland fetch for farming purposes like that? A few hundred dollars a month?

Farmland rent is usually "a few hundred dollars" - per year.
Land prices here for upland glacial till is around $5500/acre. So a couple percent/yr after taxes.

 

[bmaverick]

Yeah but how much money can a piece of farmland fetch for farming purposes like that? A few hundred dollars a month?

8 acres for the growing season is about $3K to 5K for hemp out here.

The 240 acre raised 2.4 million in hemp. Not sure what the land rate was for that.

 

[ovrszd]

Farmland rent is usually "a few hundred dollars" - per year.
Land prices here for upland glacial till is around $5500/acre. So a couple percent/yr after taxes.

Top dollar farm land will bring $225 p/acre p/year here. Average farm land $150 p/acre p/year.

Recently an 80 acre tract of high quality farm land sold for $7,500 p/acre. An average tract of land with 60-70% tillable will sell for $3,500 p/acre. Timber land will sell for $2,500 p/acre.

 

[coobie]

The only problem is buying land does not give you passive income like a rental property or dividend would.

Disagree you can lease land out for farming & hunting a lot less headache than rental property with a house.

 

[coobie]

Yeah but how much money can a piece of farmland fetch for farming purposes like that? A few hundred dollars a month?

Farmer neighbor leases out his 800 acre farm to hunt club out of Detroit for $30,000 per year for hunting rights.Big $$ spin IMHO.

 

[ovrszd]

Farmer neighbor leases out his 800 acre farm to hunt club out of Detroit for $30,000 per year for hunting rights.Big $$ spin IMHO.

$37 per acre.