High cropland prices?

gstrom99 · Feb 20, 2024

I don't farm. It's a wonder any farmer can make a profit these days. 5 years ago, the land around my acreage went for $10k per acre. Recent land sales here in and around Iowa went for $18.3k to $23.7k per acre. Amazing!

Iowa farmland brings in $23,700 per acre

Five transactions that caught the attention of farmland analyst Dave Price in 2023.

www.agriculture.com

workinonit · Feb 20, 2024

I would find it hard to believe that anyone is buying that land for farming. Maybe add-on property for protection from developing but if that's the case they would have to have deep pockets.

CloverKnollFarms · Feb 20, 2024

We bought our rolling and clear 8 acres for $7k/acre, five years ago. Appraiser said we overpaid.

Today, unimproved acreage here is selling for $25-$30k per acre! Glad I have 8 acres of it now.

Wife is in real estate, and it's really insane the pricing on acreage of 10 and under.

We are looking for 20+ acres in KY, and that is going for about $10-$20k per acre in the bluegrass region. Quantity discount!

milkman636 · Feb 20, 2024

Investment in REITs like the one below may be contributing to the continually rising prices. Money going in equals more land purchased.

Our Portfolio | Farmland Partners

We are headed back towards a feudal system where the individual needs permission from the government for any land use, and farmers will compete with each other to farm land owned by nobility/wall street. The one that will return the most to the investors wins.

oosik · Feb 23, 2024

Eight years ago - one mile south of me - unimproved 20 acre parcel. A little short of $5000 per acre. No idea what the 20 acre parcels are going for today.

Today - the tax man says my 80 acres is valued at $400K.

When we came down from Alaska in 1982 - the total annual property tax - $11. Now it's - $5000.

I know things will change in 40 years - not necessarily for the better.

oldnslo · Feb 23, 2024

Gs
No you cannot farm and cash flow property at those prices. Some of it is farms that already own property and purchase more for tax purposes and or People with money buying it for tax purposes with intention of selling in few years when tax benefits are gone.