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Jinglebob
Well-known member
9000 acre ranch that would run a pair on 20 to 25 acres, went for $395 an acre.
DiamondSCattleCo
Well-known member
I just bought a quarter for $333/acre that would run 1 pair/2 - 3 acres. I paid about $75/acre more than the current market, because it was attached to my other pasture land with wells and electricity already installed. It was also already seeded down. The gent selling had paid too much, and needed that much out of it to get out of the note, otherwise I would have forced the issue.
Rod
Rod
the_jersey_lilly_2000
Well-known member
oh goodness....it's anywhere from $3000 to $6000 an acre here. But...I can't see how anyone could make any money runnin cows for that price.
katrina
Well-known member
Just talked to a realator Saturday and he said $600.00 an acre.....
efb
Well-known member
Our ranchland has become a toy for the rich. The only way it won't go that way is if it's 200 miles of bad road from the nearest airport.
The ranch Jinglebob mentioned doesn't sound too bad until you figure it's
$8,000 per cow unit. At 6% interest that's $480 per cow. She's going to have to put in some overtime to cover that.
It's the same in our country. Three acres per cow at $2,500 per ac. equals $7,500 per cow unit. You can rent it for $60 per cow unit :wink:
The ranch Jinglebob mentioned doesn't sound too bad until you figure it's
$8,000 per cow unit. At 6% interest that's $480 per cow. She's going to have to put in some overtime to cover that.
It's the same in our country. Three acres per cow at $2,500 per ac. equals $7,500 per cow unit. You can rent it for $60 per cow unit :wink:
Cowpuncher
Well-known member
It is OK to pay too much for land, within reason.
If interest rates are 6% and inflation is 3 or 4%, you will do all right. The interest is tax deductible and the inflation is tax deferred until you sell. Of course, you have to make sure there is enough income to actually make the payments.
Look at it another way. We bought our place for $90 per acre with a 9% interest rate. Takes about 30 acres to run a pair. Calves were about $450 average.
We refinanced our loans and now pay interest at about 4 1/2% and calves last year averaged $720.
The above is especially true if you are adding on to your place and have all the infrastructure in place.
Still, anything more than $5000 a cow unit is tough. Add a section here and there and it will work, just not at the same time.
If interest rates are 6% and inflation is 3 or 4%, you will do all right. The interest is tax deductible and the inflation is tax deferred until you sell. Of course, you have to make sure there is enough income to actually make the payments.
Look at it another way. We bought our place for $90 per acre with a 9% interest rate. Takes about 30 acres to run a pair. Calves were about $450 average.
We refinanced our loans and now pay interest at about 4 1/2% and calves last year averaged $720.
The above is especially true if you are adding on to your place and have all the infrastructure in place.
Still, anything more than $5000 a cow unit is tough. Add a section here and there and it will work, just not at the same time.
Ranchy
Well-known member
The cheap stuff is going for $10,000 an acre here. The prime stuff (or at least what "they" think is prime, on some steep mountainside, with no electricity, electric, roads, etc.) is going for about $40,000 an acre.
I tell ya'll, one of these days, I'll be settin on a gold mine (or better) with what my dad has written into his will for me........... :shock: And at the rate the "foreigners" are moving in down there, I'll gladly sell off the old homestead and find a new, lot less populated area to settle in with my fortune. :lol:
I tell ya'll, one of these days, I'll be settin on a gold mine (or better) with what my dad has written into his will for me........... :shock: And at the rate the "foreigners" are moving in down there, I'll gladly sell off the old homestead and find a new, lot less populated area to settle in with my fortune. :lol:
normally grass here is in the 600 range. but a guy next to me just sold the crappiest grass and crp land I ever saw for 1500 / acre....wealthy guy wanting to bury money and have a hunting spot.
these are the people who will ruin this way of life.
these are the people who will ruin this way of life.
Charlie
Well-known member
Some pasture just west of us (river area with lots of accretion ground) just sold for around 2200 an acre. The irrigated corn ground is bringing 2800.
Charlie
Well-known member
Some pasture just west of us (river area with lots of accretion ground) just sold for around 2200 an acre. The irrigated corn ground is bringing 2800.