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farm to feet

jodywy

Well-known member
http://farmtofeet.com/robertsranch/
this place is for sale
http://bateslandco.com/land-offerings/wyoming-ranches-for-sale/
 

Red Barn Angus

Well-known member
It seems sad to me to see that kind of ranch sell that has been in the family for many years. So often today kids don't share the spirit and the love of the land. Yes, it is hard work but the rewards are much greater than any city job that I know of. Plus from an investment standpoint having the cash is a poor choice. Money isn't worth anything as far as return is concerned. Just leasing out the ranch would provide an income for life and keep the ranch in the family. None of my business of course but I hate to see these family operations sold off to investors who don't love the land, they just want an income flow from it.
 

3 M L & C

Well-known member
Red Barn Angus said:
It seems sad to me to see that kind of ranch sell that has been in the family for many years. So often today kids don't share the spirit and the love of the land. Yes, it is hard work but the rewards are much greater than any city job that I know of. Plus from an investment standpoint having the cash is a poor choice. Money isn't worth anything as far as return is concerned. Just leasing out the ranch would provide an income for life and keep the ranch in the family. None of my business of course but I hate to see these family operations sold off to investors who don't love the land, they just want an income flow from it.

I agree

However. It only takes one sibling to make it miserable on the rest and get everyone else to sell out. Also I'm not sure about this ranch but around here land is extremely over priced. Some selling at auction for twice or more than it did only 4-5 years ago. So if selling is what's going to happen no matter what. Now seems like as good as any time to do it. I see ground taking a huge hit before to long.
 

Red Barn Angus

Well-known member
You are right on the sibling situation. I have some neighbors going through the exact thing. Two boys have been doing the farming and want to continue but some city sisters can only see dollar signs and they don't have the means to buy out the sisters. It is too bad for sure.

I think the land price discussion is an interesting one. I certainly understand where you are coming from. I worked for the Federal Land Bank for many years and was there during the 1980's when we saw land values drop by half all over this area. At that time interest rates varied from 12% to over 20% at some local banks. But on the other hand CD rates were 6% to 7% if I remember correctly. At any rate CD rates were attractive for those who had cash to invest in them. I am certainly not one of those who thinks land prices will continue to climb no matter what but I do see some significant differences between then and now. Yes, land values are high and seem to be rising but interest rates are very low and alternative investments just aren't out there. CD's at 1% or less and land loans at 4 1/2% roughly so that makes a big difference in how land values react. Just an example of something I did.....two years ago I bought an all cropland 120 acres. I gave $2,000 an acre for it which I thought was plenty high. It is upland in good condition but certainly no bottom land. Last year was a tough year but we got one good rain just when we needed it and we had a decent bean crop. This year had some scary times but we managed a very good corn crop. Last year the net return was about 7%, this year it will be roughly 8%. That is net income after fertilizer, taxes, etc divided by the purchase price. I guess the reason I don't see land values going down is that as long as you can borrow money in the 4% range and get a yield on your investment of nearly double that land is going to remain an attractive investment for anyone.
 

3 M L & C

Well-known member
I see what your saying but prices the past couple of years have been good. What does $3.50 corn look like in your cash flow though. The problem for someone like me that dosnt have a bunch of money setting around is to get a good interest rate they will only loan you 65-70% of their appraised value. Which is at least 25% less than what land goes for. I was only knee high when the price took a crap in the 80's. People didn't think it could go wrong then either. Then the one bank in town went belly up and a bunch of guys got their land wrote off. Those are the ones now that are the biggest farmers. If we even get close to an average rainfall year across the us corn will be closer to $3 than it will be to $5. Then how is this ground not going to go down in price?
 

jodywy

Well-known member
yes there a sibling involved.
numbers come out to 1800 AU, that prices the ranch at $1944/AU not many place in that price range.... but then running 400 cows pulse 7 bands of sheep on top of the mountains, then probably 3 or 4 bands out on the desert and how hard it is to get labor, we think yes then gee it be a steep learning curve to run a migratory out fit like this , the cow almost end up being a side operation .
 
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