In case anybody was worried about land prices...

[jjohnsonElknewbie]

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.

Loan Deficiency Payments
Crop Insurance

 

[flatlanderhuffandpuff]

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

I really think you'll be better off for it. I don't know how they can stay inflated like this.

 

[CorbLand]

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.

I know way more farmers/ranchers that are well off than I do that are failing.

 

[CorbLand]

I really think you'll be better off for it. I don't know how they can stay inflated like this.

Is it inflated or is the dollar worth less?

 

[flatlanderhuffandpuff]

Is it inflated or is the dollar worth less?

Both. The dollars being created are not in the pockets of families buying homes. In my area there is a lot of FOMO.

 

[CorbLand]

Both. The dollars being created are not in the pockets of families buying homes. In my area there is a lot of FOMO.

That fear may be justified. The last time the US saw inflation to this level pricing never came down. Took a little over 10 years for it to shake out and housing was 150% more expensive than it was before.

 

[Thunt22]

That fear may be justified. The last time the US saw inflation to this level pricing never came down. Took a little over 10 years for it to shake out and housing was 150% more expensive than it was before.

It was more justified with record low interest rates. Now with the impending hikes, I don’t see the current trend continuing

 

[CorbLand]

It was more justified with record low interest rates. Now with the impending hikes, I don’t see the current trend continuing

Yes, increased interest rates are going to put a crunch on things but it doesn't mean that pricing is going to come down. Input prices are high, demand is high, supply is low.

Also, given the interest rate trend for the last 45 years in the US. 5.25% is still low...the average interest rate in the 70/80s was nearly double and triple that. Housing prices still continued to increase...

 

[Thunt22]

Yes, increased interest rates are going to put a crunch on things but it doesn't mean that pricing is going to come down. Input prices are high, demand is high, supply is low.

Also, given the interest rate trend for the last 45 years in the US. 5.25% is still low...the average interest rate in the 70/80s was nearly double and triple that. Housing prices still continued to increase...

Even depends what pricing we are talking about, increased asking prices or the 50-150k they’re going over the higher asking lol

 

[CorbLand]

Even depends what pricing we are talking about, increased asking prices or the 50-150k they’re going over the higher asking lol

That has already slowed down. Most homes are still going asking, which is 35% or more higher than 2019/2020.

We close Monday and got our house for ~7500 under what it appraised at. Markets slowing and markets decreasing are two different things. The increased interest rates are going to work. Its going to slow things down, it does not mean we are headed for a 2008.

 

[Axle]

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.

Our money is being taken from us through inflation, which is what happens when governments print money. This is not new. It has happened countless times throughout history.
People who have saved up a lot of cash in bank accounts (or under the mattress) are paying the highest price. People who have their money in land or other inflatable assets are benefiting from the inflation.

 

[jjohnsonElknewbie]

Wish I woulda started buying gold and silver a long time ago.

 

[SuperDUECE22]

Bill Gates and China live in NW Iowa?

no but he just bought a potato farm in the northern red river valley by Grafton ND

Entity linked to billionaire Bill Gates pays $13.5 million for Campbell Farms' North Dakota farmland

Records show that the Campbell potato farming group based in Grafton, North Dakota, has transferred more than $13 million worth of farmland to entities tied to Bill Gates, the billionaire co-founder of Microsoft who is reputedly the nation’s largest farmland owner.

www.agweek.com

 

[SuperDUECE22]

I have heard that Gates has purchased several hundred thousand acres or more of tillable farmland and same for Chinese interest. Possibly more than a million acres.

Im sure some is in Iowa. Anyone who pays so much for 100 acres must have cash to burn. Hence Bill Gates came to mind.

Sorry if yer offended or whatever.

Entity linked to billionaire Bill Gates pays $13.5 million for Campbell Farms' North Dakota farmland

Records show that the Campbell potato farming group based in Grafton, North Dakota, has transferred more than $13 million worth of farmland to entities tied to Bill Gates, the billionaire co-founder of Microsoft who is reputedly the nation’s largest farmland owner.

www.agweek.com

 

[CorbLand]

Wish I woulda started buying gold and silver a long time ago.

Land and rentals would have produced a better return.

 

[WRM]

Our money is being taken from us through inflation, which is what happens when governments print money. This is not new. It has happened countless times throughout history.

Read: The Creature from Jekyll Island. Have a stiff drink handy.

Countries that adopt "fiat" currency (what we have now) DO NOT last. History has proven this over and over. We are on a path for a catastrophic crash landing. You don't even have to believe the conspiracy theorist slant of the book that "they" want just that. End of the day, fiat currency will be our undoing and we are seeing it unfold RIGHT NOW.

 

[Andrew12gauge]

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.

1600sf on 6.5 acres is worth about 2 million out here in Idaho


Sent from my iPhone using Tapatalk

 

[WRM]

1600sf on 6.5 acres is worth about 2 million out here in Idaho


Sent from my iPhone using Tapatalk

HIGHLY doubtful it's "worth" that price. Someone may get someone to pay that, but it's not "worth" that.

 

[jjohnsonElknewbie]

Land and rentals would have produced a better return.

Agree, but I like to have something I can actually handle in my safe. Gold and sliver have been used as currency in good times and bad for thousands of years.

 

[tdhanses]

I just don't know how the big farmers, banks, and accountants make the numbers work anymore. As land prices go up input (seed, chemicals, fertilizer, machinery, etc..) costs go up and this year we have unprecedented increases in fuel, Round Up, Liberty, and nitrogen costs. How guys can pay $26k per acre when the income is a fraction of that I have no idea. Here is some quick math, and I'm pretty dumb with math, so please bear with me.

• 100 acres * 200 bushels of corn per acre= 20,000 bushels.
• As of May, corn was trading at $7.39 per bushel (20 year average is around $4). 20,000 * 7.39= $147,800 gross annual revenue.
• Profit on that $147,800 is maybe $40,000?
• $26M mortgage @ 3.92% interest over 30 years has a monthly payment of $122,932

If these guys paid cash for this ground, how in the world are the farm subsidies we all pay for to enable US farmer to compete justified?

Who is paying $26m for 100 acres of farm ground?

Now if you have a farm free and clear it can be worth the expense to pay more for land to expand. Sometimes you upgrade equipment, facilities etc, other times you buy land if possible to grow. It’s a business.