Sells more than that around egde of Springfield , but then they call someone like me to come put in a subdivision , so I guess it's not really farmland anymore ...
Highest I've heard of here was $14,000 an acre. One Mennonite sold it to another one. So much for the brotherly love they're supposed to practice.
I'm not surprised. It has been going for 15-18 here lately.
So you're broke like the rest of the landowners here?
It's been going that way around the state. $22,600 last August in Grundy. $26,000 in Johnson last October.
Thats price around me, mostly investors buying it up. A few large farming operations also buying it.
Wish I could have gotten that instead of the measly six thousand I ended up with.
2014 we paid $4k an acre for a 42 acre lot. Last year the lot next to us sold. It is 8 acres and had a condemned house on it that needed to be torn down and carried off. It sold for $210k.
4 tracts here just sold at auction here 8-8500 that kind of surprised me it’s considerably lower than has been selling
4 tracts here just sold at auction here 8-8500 that kind of surprised me it’s considerably lower than has been selling
With the increase in interest rates, the payment stayed the same, however.......
A friend of mine claims his banker has told him that the bubble is about to burst, as a lot of people who have been buying this high priced farmland have not been able to make any payments on the principle, and have been only paying interest. He says that the banker told him that they were going to demand some of their customers to pay up or else. I have no idea if this is true or not, but I have been told that there are some local Mennonites who bought some high dollar land that are behind on their payments.
A friend of mine claims his banker has told him that the bubble is about to burst, as a lot of people who have been buying this high priced farmland have not been able to make any payments on the principle, and have been only paying interest. He says that the banker told him that they were going to demand some of their customers to pay up or else. I have no idea if this is true or not, but I have been told that there are some local Mennonites who bought some high dollar land that are behind on their payments.
I think the bubble burst is coming as well.
A friend of mine claims his banker has told him that the bubble is about to burst, as a lot of people who have been buying this high priced farmland have not been able to make any payments on the principle, and have been only paying interest. He says that the banker told him that they were going to demand some of their customers to pay up or else. I have no idea if this is true or not, but I have been told that there are some local Mennonites who bought some high dollar land that are behind on their payments.
I think the bubble burst is coming as well.
It came back in the 1980's, and when it burst, it made a very loud noise.
In the 80's, they cared about inflation, and raised interest rates. And, did they ever!
It remains to be seen what they do this go round.
Mortgage rates averaged 5% last week, another quarter percent up in one week. Commercial loans will generally be a couple of points higher. That’s going to push a lot of buyers to the side line.
In the 80's, they cared about inflation, and raised interest rates. And, did they ever!
It remains to be seen what they do this go round.
T-Bills paid well back then...
2014 we paid $4k an acre for a 42 acre lot. Last year the lot next to us sold. It is 8 acres and had a condemned house on it that needed to be torn down and carried off. It sold for $210k.
I thought a guy selling 8 undeveloped acres for $80K in a boxed in lot here was bad.