[cptusa]

Land sold at auction today, 145 acres m/l, 83 csr, well drained, good ground. $10000/acre or $121/csr point. That type of land was bringing $140-150/csr point or $11500-$12000/ acre.

 

[NairibinFarms]

That price still sounds ridiculous to me. What sort of yields would you expect to pull of it? Can you get more than one crop a year?
Land around around here ranges anywhere from $500- $1500 ac.

 

[cptusa]

Single crop a year. That ground will raise 200-250 bushel per acre corn, and 55-65 bushel per acre soybeans. Open market rent this farm will easily bring $400/acre. And no, that doesn't pencil out.

August 21 another 80 acres sells at auction, better ground, 92 csr, should be interesting.

 

[Don Boles]

92 csr

Some sort of rating system I gather?

 

[cptusa]

CSR= crop suitability rating. Factors in soil types and slope. 100 is the best.

 

[jesseb99]

It's an Iowa thing, or at least the ground I farm in Iowa has it and the ground I farm in Missouri doesn't.

 

[morb1lee]

I see the rating in MN as well. I would think a few people are worried with the drop in prices. After sugar dropped in price last year there wasn't much moving of equipment and the land was all over the place... chances are it will get really interesting over the next year.

 

[NairibinFarms]

Single crop a year. That ground will raise 200-250 bushel per acre corn, and 55-65 bushel per acre soybeans. Open market rent this farm will easily bring $400/acre. And no, that doesn't pencil out.

August 21 another 80 acres sells at auction, better ground, 92 csr, should be interesting.

So what do you get for a bushel of corn & soybeans?

 

[w-mFarms]

corn 4.25 if your lucky, beans $12 i'd say

 

[cptusa]

Local elevator- new crop corn $3.80, new crop beans-$10.30. People still have the memory of $7 corn and $15 beans in their minds.

 

[morb1lee]

Local elevator- new crop corn $3.80, new crop beans-$10.30. People still have the memory of $7 corn and $15 beans in their minds.

not anymore with the report, ugh.

 

[Duane H]

I have 3200ac that I would let go for $10,000.00/ac heck ill even throw in the crop with it.

 

[whtbaron]

LOL.... I've been through Raymore and I"ll bet you would! I thought it was bad around here when land started going above $1,000/ac. Lately there is one half that is supposed to have traded between $4 and $5k/ac. It's class 3 and 4 land with a #1 class rating being our best, #7 not really farmable.

 

[Don Boles]

I have 3200ac that I would let go for $10,000.00/ac heck ill even throw in the crop with it.

Clearly, a good hearted soul!

 

[w-mFarms]

not anymore with the report, ugh.

10.38 new crop beans.....
ouch
3.8 corn.... let me grab my pencil here.
I hope prices will go back up, they have to

but with those yields you can pay off the land overtime and just hope for one record price.
plus interest is so cheap, your actually better off borrowing money than letting it sit idle in the bank.
inflation is higher than interest.

 

[morb1lee]

10.38 new crop beans.....
ouch
3.8 corn.... let me grab my pencil here.
I hope prices will go back up, they have to

but with those yields you can pay off the land overtime and just hope for one record price.
plus interest is so cheap, your actually better off borrowing money than letting it sit idle in the bank.
inflation is higher than interest.

prices were bound to get back to historical levels eventually. If people thought I was going to last for ever they had to be kidding themselves... if they did remain high then prices for everything else would just keep rising.

A wise man once said to never borrow to invest. Farming no exception to this statement, but I think it's become so common/accepted people don't think about it.

 

[wiscjim]

People buying this land are paying cash. They need to invest their money in something solid. One thing is known; someday it will rise again even if the Dollar wont. The more they devalue the Dollar the higher inflation will drive everything.

 

[morb1lee]

People buying this land are paying cash. They need to invest their money in something solid. One thing is known; someday it will rise again even if the Dollar wont. The more they devalue the Dollar the higher inflation will drive everything.

Why are investors looking to pour money into emerging markets vs land in the US then?