Illinois farm land

[deere755]

This past week 2 tracts of land totaling 305 acres I believe sold at auction for $8800 per acre and $9000 per acre. This is some prime farm land in Moultrie county but in the middle of no where. I can see it if it were near an area where it could be sold off to a developer but it is a long way away from any development. Our local paper says it is a record high for farm land in Illinois. I had heard of some land bringing $7000 and thought that had to be the ceiling for land prices but I was wrong. I can remember in the 80's land hit $3000 and farmers went under trying to pay for it.

 

[zionview]

I also remember all the "young tigers" that bought land in the 70s and 80s and never even thought of a year or two without appreciation on the land value. The only one I can think of that's still in business has been in jail and filed for bankruptcy along the way. They all aquired operating money every year by borrowing against inflation. Even a few "old tigers" got caught playing that game. A quick scan of current all-purpose prices in our area shows about $9600/acre. It will rarely sell for agriculture at that price. Even the Amish have laid off buying farms lately, and the influx from Lancaster County, PA to this area(Central PA) was part of the initial increase in farm prices in the 70s and 80s. I hope we don't have another fallout like we did in the 80s. There won't be enough farmers left.

 

[kthompson]

In my part of the world $8,000 per acre would be cheap and grabbed right up even today IF not wet land. Yet most of that is being bought for housing or such. So many retries are making it hard for the operating farmer. Then here comes a road and they believe the land that is selling for $15 to $20 per acre is only worth $5,000 per acre. We are up against that now. Next door turned down $30,000 per acre (been in hay for a few years but was being looked at for houses) and our land joins it (also in hay) and oh since road needs it not near as valuable. It does concern me what is happening on Wall Street but we do need to see some prices not only stabilize but come down. kt

 

[zionview]

kt, your comment about land that is not wet really hits a nerve with me. Around here, they fill in wetlands and build houses. They are using fill from other jobs to bury land that is actively growing cat-o-ninetails and marshgrass. If someone were to pull a plow or sprayer through that same ground with intent to grow an agronomic crop, they would be arrested or fined. Why don't swampbuster laws apply to developers?

 

[kthompson]

kt, your comment about land that is not wet really hits a nerve with me. Around here, they fill in wetlands and build houses. They are using fill from other jobs to bury land that is actively growing cat-o-ninetails and marshgrass. If someone were to pull a plow or sprayer through that same ground with intent to grow an agronomic crop, they would be arrested or fined. Why don't swampbuster laws apply to developers?

Money? We have some prime rivers here and they are bent that a major water fowl area on one is the only route for a proposed interstate. Over time they finally got it approved. Mind you this was the government who wanted the road through there, not any land owner or business.

Seriously as to the wet lands, have been told they do a swap on the wet lands. If they are allowed to fill in this area then they will set aside another area. No idea how that benefits the reason for saving wet lands. kt

 

[schmism]

Why don't swampbuster laws apply to developers?

because the developers usually make a deal that goes soemthing like,

"if you allow us to fill in this low area, a natural wet land, then we will dig out this area over hear next to the river so it holds water to "recreate" the wetland we destroyed"

the problem is, the recreated one is usually never as good as the natural one you distroyed.

 

[zionview]

There is one "re-created" wetland about 4 miles from here that now drains onto the farm next to the development it serves. I've been in those fields after heavy rains, and seen the gulleys chewed out of no-til crops. Another busted wetland is at the end of a long, rather straight creek bed. Years ago, that land wouldn't perk for a house, but somebody filled it in, and built 3 houses so far. I remember when I was young, the farmer swamped a 706 Farmall to the frame trying to plow that bottom. He "tried out" an 856 long enough to pull his tractor out and get the rest of the field plowed!