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Joined: Oct 2013
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Campfire Outfitter
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Will any local banks finance that kind of money for vacant land ? We have to put a minimum of 30 % down, even if there is timber and good water. Land Bank will finance more land than you can pay for. Why not? It ain't going anywhere. At what kind of interest and terms will they give you? Our farm credit wants between 7-8 for a 12-15 year note but they still want 30% down, you can do way better if you want or can borrow on home equity, which isn't as much a gamble if you are buying timberable property that you can turn into quick cash without the risk of losing your home, crop prices are far to violitale to go that route with crop land.
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Joined: Aug 2004
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Campfire Kahuna
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Campfire Kahuna
Joined: Aug 2004
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Will any local banks finance that kind of money for vacant land ? We have to put a minimum of 30 % down, even if there is timber and good water. Land Bank will finance more land than you can pay for. Why not? It ain't going anywhere. At what kind of interest and terms will they give you? Our farm credit wants between 7-8 for a 12-15 year note but they still want 30% down, you can do way better if you want or can borrow on home equity, which isn't as much a gamble if you are buying timberable property that you can turn into quick cash without the risk of losing your home, crop prices are far to violitale to go that route with crop land. Most use Capitol Farm Credit here. https://www.capitalfarmcredit.com/products/rates
Molɔ̀ːn Labé Skýla!
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Joined: Jan 2012
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Campfire Ranger
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Campfire Ranger
Joined: Jan 2012
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Will any local banks finance that kind of money for vacant land ? We have to put a minimum of 30 % down, even if there is timber and good water. Land Bank will finance more land than you can pay for. Why not? It ain't going anywhere. At what kind of interest and terms will they give you? Our farm credit wants between 7-8 for a 12-15 year note but they still want 30% down, you can do way better if you want or can borrow on home equity, which isn't as much a gamble if you are buying timberable property that you can turn into quick cash without the risk of losing your home, crop prices are far to violitale to go that route with crop land. Timber is just as volatile. Bottoming out now....
FJB & FJT
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Joined: Nov 2010
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2010
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I remember giving $450 an acre for a farm and worrying myself half sick as to whether or not I could pay for it by farming it, but I did. I cannot imagine giving $10,000 or more an acre and having to pay for it by farming it. It would be extremely hard to do. You can't. Simple as that, not with conventional commodity crops. Now, maybe Hemp or some niche crop. Not sure about that. I'd have problems sleeping at night if I had that much in a piece of land, planning to live out of the proceeds, pay for equipment and service the note... Not me... DF
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Joined: Oct 2013
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Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2013
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Will any local banks finance that kind of money for vacant land ? We have to put a minimum of 30 % down, even if there is timber and good water. Land Bank will finance more land than you can pay for. Why not? It ain't going anywhere. At what kind of interest and terms will they give you? Our farm credit wants between 7-8 for a 12-15 year note but they still want 30% down, you can do way better if you want or can borrow on home equity, which isn't as much a gamble if you are buying timberable property that you can turn into quick cash without the risk of losing your home, crop prices are far to violitale to go that route with crop land. Timber is just as volatile. Bottoming out now.... Its in the timing, with crops its an every year/ couple of time a year crap shoot, with timber , tornados are the only real threat and that's a pretty low threat, select cutting can keep you up on the payments if its done right, and if you have to wait five years to harvest, well you get that many more board feet, its a win win ! Never is the banker anything but your enemy.
Writing here is Prohibited by the authorities.
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Joined: Dec 2005
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Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
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And just how much timber is on "prime Iowa farmland?"
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Joined: Jan 2012
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Campfire Ranger
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Campfire Ranger
Joined: Jan 2012
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Most of the "farmlands" in my county ARE going at or near $10K per, but they aren't staying farms.
We have maybe two farm families that actually purchase and continue[add] farming land. One recently bought a golf course with a five year plan of reverting it back to pasture. They also recently bought 1/3 of the farm I hunt with a friend that comes back annually to hunt. They paid about $6.5K per on that one for 300+ acres[purchase also included a long term grazing lease on the other 2/3].
FJB & FJT
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Joined: Jan 2012
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Campfire Ranger
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Campfire Ranger
Joined: Jan 2012
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"Its in the timing, with crops its an every year/ couple of time a year crap shoot, with timber , tornados are the only real threat and that's a pretty low threat, select cutting can keep you up on the payments if its done right, and if you have to wait five years to harvest, well you get that many more board feet, its a win win ! Never is the banker anything but your enemy."
I'm just saying that it's all a crap-shoot anymore. And agree 100% RE banker/enemy!
FJB & FJT
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Joined: Oct 2013
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Campfire Outfitter
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Campfire Outfitter
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Most of the "farmlands" in my county ARE going at or near $10K per, but they aren't staying farms.
We have maybe two farm families that actually purchase and continue[add] farming land. One recently bought a golf course with a five year plan of reverting it back to pasture. They also recently bought 1/3 of the farm I hunt with a friend that comes back annually to hunt. They paid about $6.5K per on that one for 300+ acres[purchase also included a long term grazing lease on the other 2/3]. You could buy the county I live in for 6.5K per acre, 2-3k per acre for "waste land" , IE farm land reverting back to low quality scrub woods, mostly soft maple, the money is in hardwoods and most of those are being inherited by 20-30 year olds city brats ,after mom and dad pass, they have the amish clear cut it for a one time bonanza and then try and sell it for whatever they can get, you can buy these for 500-800 per acre. These can be profitable if the landscape allows for a pond and decent reclamation, plant an orchard, build a pond or two and replant with oak, then resell of 4-6 k depending on the size and location.
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Campfire Tracker
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Campfire Tracker
Joined: Nov 2018
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Most farmland here in my part of North Dakota is going to older farmers for their kids future. They made some money by farming for 50 years or so and can’t get any interest on it. No gamble to speak of in land as it will not disappear. Ed k
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Campfire Outfitter
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Campfire Outfitter
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The land is not disappearing here its the farmers themselves that are, its go big or go home ! Some of the places sitting empty would break the hearts of those who opened this land up.
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Campfire Regular
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Campfire Regular
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Lol... you do realize the vast majority of american farming as you would think.... specifically this iowa piece.. is grain and not food for the “boo’s” as you put it...
This post is going down like 90% of the political threads on here... 99% of the posters havent a clue wtf they are talking about, but do so with such authority... LOL. You do realize you are not talking to an inner city dumbass, don't you? ![[Linked Image from i.imgur.com]](https://i.imgur.com/WMfwTeB.jpg) So grain isn't food? What feeds the beef? What feeds the milk cows? Where does bread come from? You sure are right about most of the posters here not having the most remote clue.  No I dont know... because your making this post about stuff it isnt about... the USDA and budgets... When its about land prices and then easements...
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Campfire Regular
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Campfire Regular
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I remember giving $450 an acre for a farm and worrying myself half sick as to whether or not I could pay for it by farming it, but I did. I cannot imagine giving $10,000 or more an acre and having to pay for it by farming it. It would be extremely hard to do. You can't. Simple as that, not with conventional commodity crops. Now, maybe Hemp or some niche crop. Not sure about that. I'd have problems sleeping at night if I had that much in a piece of land, planning to live out of the proceeds, pay for equipment and service the note... Not me... DF Corn 190/bu average at $3.75/bu = $712/acre revenue for summer crop. Im not sure about Iowa, but here we winter crop. I have barley in now. Barley 58/bu average at $5/bu = $290/acre revenue for winter crop.
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Campfire Regular
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Campfire Regular
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I asked the young couple who bought our home place if they were sure they wanted to get tied into that much debt. The young husband promptly asked me back when the last time our land had sold. I told him 65 years ago. He said "That's my point!" He wanted his two sons to get into farming and they just won't have a chance to do it the land isn't available. There are about half dozen young couples trying to get into farming in our old neighborhood. With land going for $5,000 - $10,000 an acre I just can't see it happening.
By the way, the young couple who bought our place put up a new house, worth about $300,000 - $400,000 and a couple of new machine sheds. Maybe they found gold or oil or something on that land...?
“My horn is full and my pouch is stocked with ball and patch. There is a new, sharp flint in my lock and my rifle and I are ready. It is sighted true and my eyes can still aim.”
Kaywoodie
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Joined: May 2016
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Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 60,833 Likes: 57 |
5 dollar a bushel barley?
I am MAGA.
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Joined: Oct 2013
Posts: 8,490
Campfire Outfitter
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Campfire Outfitter
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5 dollar a bushel barley? That's like a gold strike right there ! 
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Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 60,833 Likes: 57 |
No kidding. Near ten dollars a hundred.
Hell of a price.
I am MAGA.
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Joined: Jan 2012
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Campfire Ranger
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Campfire Ranger
Joined: Jan 2012
Posts: 26,647 Likes: 7 |
I asked the young couple who bought our home place if they were sure they wanted to get tied into that much debt. The young husband promptly asked me back when the last time our land had sold. I told him 65 years ago. He said "That's my point!" He wanted his two sons to get into farming and they just won't have a chance to do it the land isn't available. There are about half dozen young couples trying to get into farming in our old neighborhood. With land going for $5,000 - $10,000 an acre I just can't see it happening.
By the way, the young couple who bought our place put up a new house, worth about $300,000 - $400,000 and a couple of new machine sheds. Maybe they found gold or oil or something on that land...?
A 100acre tract near us just sold for $1M. Gone from pasture to somebodies play place. Dude bought a 1/2M $ home next to it while building his own. There is so much $ out there anymore.......
FJB & FJT
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Joined: Aug 2004
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Campfire Kahuna
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Campfire Kahuna
Joined: Aug 2004
Posts: 69,741 Likes: 36 |
Lol... you do realize the vast majority of american farming as you would think.... specifically this iowa piece.. is grain and not food for the “boo’s” as you put it...
This post is going down like 90% of the political threads on here... 99% of the posters havent a clue wtf they are talking about, but do so with such authority... LOL. You do realize you are not talking to an inner city dumbass, don't you? So grain isn't food? What feeds the beef? What feeds the milk cows? Where does bread come from? You sure are right about most of the posters here not having the most remote clue. No I dont know... because your making this post about stuff it isnt about... the USDA and budgets... When its about land prices and then easements... Then you really are a dumbass. Please stay in Maryland. https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/easements/acep/
Molɔ̀ːn Labé Skýla!
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Joined: Aug 2005
Posts: 26,337
Campfire Ranger
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Campfire Ranger
Joined: Aug 2005
Posts: 26,337 |
[quote=Johnny Dollar]I asked the young couple who bought our home place if they were sure they wanted to get tied into that much debt. The young husband promptly asked me back when the last time our land had sold. I told him 65 years ago. He said "That's my point!" He wanted his two sons to get into farming and they just won't have a chance to do it the land isn't available. There are about half dozen young couples trying to get into farming in our old neighborhood. With land going for $5,000 - $10,000 an acre I just can't see it happening.
By the way, the young couple who bought our place put up a new house, worth about $300,000 - $400,000 and a couple of new machine sheds. Maybe they found gold or oil or something on that land...?
A 100acre tract near us just sold for $1M. Gone from pasture to somebodies play place. Dude bought a 1/2M $ home next to it while building his own. There is so much $ out there anymore.......[/quote this is the reality of the times we are living in. hard for me to imagine, but not so hard for doctors, lawyers, and accountants.
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