Farmland headed for a bubble?

[TODO]

I deal in this everyday. Yes, it will be a bubble if we see a big negative change in commodity price. Most of the buyers have been funds lookin at a specified return. If the necessary rent to hit that return is not feasible from the farmers standpoint then they will unload it. Farmland dropped 80 percent from around 1982 to 84. Now with that said, it will continue to appreciate as long as commodity prices support it. I personally wouldn't be looking to get in right now. If chit hits fan I'm gonna load up after the correction. And like said above, delta land aint iowa land. I've seen a few sales for 4k an acre but they had it all, bins leveled etc. Average price for leveled buck is around the 3K mark.

[huntersmky]

he is one interesting character. I don't know how much time he has left on this earth. he looks like chit

George Soros would like nothing better than to wreck our economy. He's tied to several other broke economies and groups that are messing with ours.

[mudsucker]

he is one interesting character. I don't know how much time he has left on this earth. he looks like chit

George Soros would like nothing better than to wreck our economy. He's tied to several other broke economies and groups that are messing with ours.

Yesterday would be too soon for that piece of sheat!

[fireplug]

`This is what happened in the early 80"s we had a correction then intrest rates went to 21%.

And this will be coming sooner than later. You can take that to the bank for sure. I'm guessing it will be around 12-15% though, probably
not quite 21%

Same thing that happened when Reagan took the white house from Carter. History is repeating itself.

[Marenisco]

9,300 an acre? holy... that's insane

Can a farmer clear $372 an acre? If so, $9,300 is in the ball park at today's interest rates of 4%.

[hillhunter]

9,300 an acre? holy... that's insane

Can a farmer clear $372 an acre? If so, $9,300 is in the ball park at today's interest rates of 4%.

Do you mean can he pay $372 per acre rent? No. Does he clear $372/acre of production? Sometimes more, most of the time way less, depends on the year.

[Caller1]

Pitstick farming for a "hoped for" average of $10.00 per acre return. 50,000 * 10=$500,000. Would rather farm tight 2500 acres for $200/acre return.

[Caller1]

But, land has been headed for a bubble all my life. Every grandpa has said "that's too much to pay for that land", then 3 years later kicked himself for not buying it. In 1996 $800/ acre was "way too much". In 2000 $1300 was crazy. In 2007 it was the talk all over town when the Suchandsuch place sold for an unheard of $2200/acre. This spring a man sold out for an unreal $3400 an acre on 2700 acres, only to realize he sold 6 month too early cause he could have got $3700.

Rates are low and the Fed says they are staying low for two years. I say we could see $5000 an acre in next couple of years.

[TODO]

George u really believe the 10 an acre for pitstick? That doesn't make any sense think about his input liability. Tens of millions. His beans at duncan didn't cut 10 bushels I bet. So maybe so?

[torch]

George u really believe the 10 an acre for pitstick? That doesn't make any sense think about his input liability. Tens of millions. His beans at duncan didn't cut 10 bushels I bet. So maybe so?

He has no equipment cost, Hey buys seed chemical and fertilizer in bulk ( none locally). He doesnt draw a dime of any government payments on land here. INSURANCE and more than 10.00 an acre

[Nitro Mag]

I know there was land sold in Leflore county for $4700 acre. Alot of these people sell land in Arizona and midwest for 8-12000 an acre and buy land here. 2012 will be the last year for gov't subsidies as we know them today.

[Caller1]

I don't believe that's his goal. Supposedly what he told da man whose farm he just leased in Rosedale. And about the free equipment, would be nice but you know that doesn't make the crop. A few around here with little or no equipment payments and they ain't all excited about paying $200+ for just any ole farm.

Wonder what a bean year like 2005 would do for him? Everyones already forgotten that one. Good farmers averaging 27-32 bushel beans that year.

Agreed that $10 versus risk would be foolish.

[MSdukhntr]

Don't tell Jim Kennedy, nobody will have a place to hunt the way he sucks up land. Ask the folks in Quitman County

[JDgator]

Its been more than a year since we had this disucssion, and so far no bubble burst. Business insider just had another article about a potential burst, but maybe not. I'm wondering if international demand for commodities supports supports these prices.

[MemphisStockBroker]

.......if you DON'T get an appraisal within 9 months of inheriting the land, the cost basis will revert back to whatever the deceased landowner paid for the land, which could put you in the poor house, or even worse, having to sell the land, just to pay the taxes.

not quite true....