In case anybody was worried about land prices...

[74Bronco]

Thing that gets me...where is this money coming from? I live in a very rural isolated area with not alot of good paying jobs and our housing market is insane. We look around at what people have and think it just doesn't make sense with what they're making.

I am a lender to farmers and ranchers. Great crowd to work with, but the government checks they have been seeing the last couple of years, in our area anyway, is ridiculous. Then PPP loans forgiven. And now commodities have increased. Those PPP loans are buying hunting properties for plumbers and electricians among others that have a few employees. For companies that changed very little of their business plan, if anything.
So to answer your question, the money is coming from the government, which doesn't have any until it taxes us...

 

[CorbLand]

Yeah I can see that. I remember the day the first stimulus checks hit, we were in WalMart and watching people walk out with TV's and a ton of nonessential items. I turned to my wife and said there's our tax dollars at work.

The only part of the stimulus and PPP loans that were your tax dollars is the ink. The rest of it was created out of thin air.

 

[CorbLand]

So to answer your question, the money is coming from the government, which doesn't have any until it taxes us...

Incorrect, they don't have to tax us. In this case and the case with the 2008 bailout, they just printed the money.

 

[jjohnsonElknewbie]

I live on 6.5 acres in WNC. Mountains all around. My land appraised at 45k per acre several years ago. It has only increased since then. My house is only 1600sf. Would sell for 500k in less than a week if i listed it. Which i do not plan to do. I inherited the property from my mother and paid less than 100k to build the house in 1996.

The county re-assessed all rural properties 2 years ago, and the assement on our 14 acres and 100 year old 1800 sf house more than doubled.

2021 land value- 67140
2020 land value- 12470

2021 dwelling value- 86740
2020 dwelling value- 47750

2021 total value- 153880
2020 total value- 62820

The place appraised for $235k in 2020, but acreages half as big with crappy houses are going for over $300k easy around here and usually multiple cash offers in a matter of days. They either get young people or farmers tear them down and farm them, completely erasing them from existence.

 

[74Bronco]

Incorrect, they don't have to tax us. In this case and the case with the 2008 bailout, they just printed the money.

True. And I haven't looked it up, but printing money is easier to get the approval of both sides. Higher taxes is a little different story. And right now the printing seems to have worse side effects.

 

[Billinsd]

The era of passing down land to your grand children is over....

Why's that? Would property taxes be too high?

 

[WRM]

Why's that? Would property taxes be too high?

As I noted above, I got a "grandchild hand down". And, I'm sure thankful. The chance my kid, much less my grandkid, will get it is virtually nil. I'll have to reverse mtg it at some point to live. Then it's gone. But, plenty of other kids/grandkids will have problems JUST paying the taxes as "values" go up.

Ever wonder how lots of people never seem to truly "get ahead", no matter how hard they try? This right here. And lots may be about to become most.

 

[amassi]

Thing that gets me...where is this money coming from? I live in a very rural isolated area with not alot of good paying jobs and our housing market is insane. We look around at what people have and think it just doesn't make sense with what they're making.

If you have internet you may be seeing an influx of remote workers. Tech workers paying $3500 a month for studio apartments abandoned cities in droves, the Still have big city compensation to buy where their dollars stretch further

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[Bijoukid]

Why's that? Would property taxes be too high?

Yep and if the libs get their way and eventually eliminate stepped up basis it'll be even worse

 

[svivian]

If you have internet you may be seeing an influx of remote workers. Tech workers paying $3500 a month for studio apartments abandoned cities in droves, the Still have big city compensation to buy where their dollars stretch further

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Yep or they sold their homes in high cost of living areas and paid cash for homes in low cost areas.....

 

[Broomd]

Just got our 2022 property tax assessments yesterday.
Our property values increased exactly 100% over last year, the assessor ever showed the values side by side.

No doubt everyone in this area received the same increases.

 

[324matt]

PPP loans handed out as free money,

What about subsidies?

And you can always put that farmground in CRP and get paid by the government.

Or you can cash rent it to a farmer with a % of the harvest.

And the huge tax write offs that farmers have.

Here in Illinois, I’ve never met a rich farmer. They sing the “I’m a poor farmer” song. They sing it from inside their 1.2million dollar combine, or their 2022 Denali duramax with American force wheels in it and a 12” lift. Lol

I’m no way jealous of that life, if I wanted to juggle numbers and cook books, and work 120hrs a week I’d have been a certified CPA.

I’m not knocking the lifestyle or the money they pay for land, it is what it is. I’ve learned for me less is more.

 

[Bijoukid]

PPP loans handed out as free money,

What about subsidies?

And you can always put that farmground in CRP and get paid by the government.

Or you can cash rent it to a farmer with a % of the harvest.

And the huge tax write offs that farmers have.

Here in Illinois, I’ve never met a rich farmer. They sing the “I’m a poor farmer” song. They sing it from inside their 1.2million dollar combine, or their 2022 Denali duramax with American force wheels in it and a 12” lift. Lol

I’m no way jealous of that life, if I wanted to juggle numbers and cook books, and work 120hrs a week I’d have been a certified CPA.

The subsidies only pay in bad years these days and crp is generally land that isn't suitable for farming. Equipment is tax write offs but we also pay retail for everything and sell at wholesale prices which we have no control over. Most farmers are cash poor and run on operating loans, but keep on thinking we have scrounge McDuck money

 

[CorbLand]

The subsidies only pay in bad years these days and crp is generally land that isn't suitable for farming. Equipment is tax write offs but we also pay retail for everything and sell at wholesale prices which we have no control over. Most farmers are cash poor and run on operating loans, but keep on thinking we have scrounge McDuck money

You mean farmers do what every big, wealthy business does? Wealthy people rarely have a lot of cash...doesn't mean they don't have money.

Subsidies only pay in the bad years? So you mean that when you have a bad year you get bailed out and when you have good years you get to keep all the profit. Seems pretty hard to lose.
CRP may be unsuitable for farming but they still get paid to not use it. Its worthless ground from a farming stand point that is turning a profit.
Doesn't matter if you buy something because you want it or its a tax write off, you own it and you still have to be able to afford it.
I dont buy the "buy at retail sell at wholesale" claim either. If it is that bad, why dont more of them quit and go do something thats actually profitable?

I love farmers. Know tons of them and even have them in my family. They all bitch and moan. They never have had a good year in 100 years of farming. They all claim they never make any money. They cry poverty from the window of a brand new pickup and I aint never seen their tears hit the leather.

 

[jjohnsonElknewbie]

Subsidies only pay in the bad years? So you mean that when you have a bad year you get bailed out and when you have good years you get to keep all the profit. Seems pretty hard to lose.

They all claim they never make any money. They cry poverty from the window of a brand new pickup and I aint never seen their tears hit the leather.

These right here...

I too know and am very good friends with lots of farmers, and these guys are the first ones to admit the system is tilted in their favor. But hey, if the government is giving free money away, human nature is to take it.

And for the record, not all land enrolled in CRP is highly erodible (HE), poor quality, or otherwise compromised. One of the previous farm bills let guys put damn good ground in the program for soil building and pollinator programs. My 14 acres are surrounded by 80 acres of slightly rolling ground that the owner successfully enrolled including a $100/ac signing bonus that he's getting over $400/ac.

Let's not get started on crop insurance either. Taxpayers pay the majority of the premiums for zero return. Guys get fields hailed out or winded out, collect their insurance check, and get paid for whatever they're actually able to harvest to boot.

If I put up a steel building valued at $100k, I'm taxed for the full $100k. If I was a farmer, I'd only get taxed at 25% of the value.

Then these same guys dropping off their kids in $85k 3/4 Denalis are getting free and reduced school lunches.

 

[southLA]

Man y'all must know some rich farmers I don't, because my family has farmed the same land for over 125 years and I don't have a clue what the heck y'all are talking about.

 

[jktex]

Something has to give in the next year or two. It is not sustainable with how much houses/land are increasing while interest rates are raising and inflation

Agree. You can only blow up a balloon so much before.. bang.

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[flatlanderhuffandpuff]

My wife and I purchased 7 years ago on a modest rancher with 1 acre. Friends of ours just paid 2.4x cash for a very similar house on .5 acre with no inspection 6 hours after it hit the market.

Someone is going to be left holding the bag when this whole thing goes tits up.

 

[mossyoak52]

I don't know how y'all are doing it out there. In Idaho, they are strictly growing roof lines and valley gutters

That's how they are doing it buying it and subdevideing it but it For $800/ac devide it into lots and get $2,000 /ac
supply and demand not hard to figure out how they're doing it

 

[Thunt22]

My wife and I purchased 7 years ago on a modest rancher with 1 acre. Friends of ours just paid 2.4x cash for a very similar house on .5 acre with no inspection 6 hours after it hit the market.

Someone is going to be left holding the bag when this whole thing goes tits up.

I’ve been trying to buy a house with my gf for the past year we are 26 and can’t compete with people like that. Just hoarding money now until something pops