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land auction

J

jigs

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Mar 17, 2005
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KANSAS
an heir of the kool-aid fortune sold out a bunch of his land today... pivot irrigated land brought and average of $5,500 and acre dryland brought $3200 and acre, pasture was just shy of $1300 an acre sold a lease on some more land for $500 an acre for three years...


unbelievable! at those prices, there is NO WAY to make the land pay for itself. some went to local big boys, but a LOT of it went to big oil money guys
 
C'mon up Jigs, I'll sell you some land for $1250 an acre. Buildings and improvements and rangeland thrown in on the deal.





You might have a little difficulty getting corn or wheat to grow.................................................................... :D
 
jigs said:
an heir of the kool-aid fortune sold out a bunch of his land today... pivot irrigated land brought and average of $5,500 and acre dryland brought $3200 and acre, pasture was just shy of $1300 an acre sold a lease on some more land for $500 an acre for three years...


unbelievable! at those prices, there is NO WAY to make the land pay for itself. some went to local big boys, but a LOT of it went to big oil money guys
Click to expand...

we know that doesn't matter.
 
the fastest way to get land to pay for itself,is to put it in as many government programs as possible.CRP,forestry,wetland,ponds,cost share,erosion control,etc. seen it done by a doctor who was an invester.only farming he had done was food plots to feed the wildlife.

he had 3 nice ponds dug on 1 farm with cost share AND never owned a cow.i think he even got the gov to stock em with fish.

he has put together several farms this way successfully!
 
balestabber said:
the fastest way to get land to pay for itself,is to put it in as many government programs as possible.CRP,forestry,wetland,ponds,cost share,erosion control,etc. seen it done by a doctor who was an invester.only farming he had done was food plots to feed the wildlife.

he had 3 nice ponds dug on 1 farm with cost share AND never owned a cow.i think he even got the gov to stock em with fish.

he has put together several farms this way successfully!
Click to expand...
lot of land in Marion county owned by a doctor doing the exact same thing...


this is investor money ... they don't care if there is a profit or not. at $5000 an acre, it is VERY tempting to sell, and wait it out to buy it when this bubble bursts
 
no minerals here !! 160 an acres is pretty decent, but there are guys going to 200 an acre and 50 on grass.... we have to work too hard irrigating to make 240 bu corn, so 150 is about max you can justify for rent once you add in your operating costs
 
If my math is correct, it is alot, but from an investment standpoint, a 5% return on $3200/acre is $160. Not sure what they will pay for the irrigated land, but if they can lease it out for $250/acre that is a 4.5% return. Better than a CD and probably safer than the stock market.

Don't get me wrong, as a producer, I think it is crazy, but as an investor, maybe not so bad.
 
it is a great investment, but from a production standpoint, way out of wack!

the grass is crappy grass as a rule in our area. it is "snow grass" for as long as I can remember, guys dumped cows on the grass as soon as the snow melted, and left them till the snow flew again in the fall...... many years of poor grass management. a few guys are trying to change it, but it takes a LONG LONG time to alter that kind of abuse.


just saw this morning that the total sale was 4.7 million dollar.... at 3% the realtor earned a nice little pay check!
 
I just paid $475 an acre for grassland that takes 20 acres to run a cow. That doesn't pencil out now, but I can make the payments the same as I have been and have more land(spread out what I still owe) It won't work until calves are 1.50 or more, but I will have it 1/3 paid for and it will look cheap then.

I would rather go broke trying to move foreward than go broke standing still, or worse, have one of my kids want to return to the ranch and not having a big enough place to do it on. If I can borrow the money, I will buy more land in the future. The price has nothing to do with it, the matter of whether I can borrow the money does.
 
no minerals here !! 160 an acres is pretty decent, but there are guys going to 200 an acre and 50 on grass.... we have to work too hard irrigating to make 240 bu corn, so 150 is about max you can justify for rent once you add in your operating costs
Click to expand...

That's rent? :shock: Wow. The top rent possible here is maybe $150 on irrigated potato land, but there's not much of that around. Most guys would be dancing in the streets if they got $50.00 for good grain land. There's no way on earth grass would rent for anywhere near that. It wasn't that many years ago that grain land rented out for about the cost of the property taxes.
 
Doug, that is pretty scarey number crunching! But good for you for being brave enough to do it! And your logic is sound, IMO.

I don't recall any time in the history of land ownership in our part of SD that it could really 'pencil out' to buy land to raise cattle do you? Here, we need at least 25 acres, and probably should figure a little more per cow, with little level enough to farm, but very good grass.

Seems to me, it just depends on the fortitude, determination to continue for future generations, and work ethic of a family in deciding if it really can work.

Wishing you and your family the best results in your adventure!

mrj
 
Same way here only higher. land going for 7000+ and cash rents for around 350 Hay ground being plowed up to corn and investors buying up everything and doing better than the stock market & CDs or using for a tax break and drawing gov't subsidies.
 

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