- Thread starter MoMike
- Start date
Anonymous-0
Well-known Member
You know I scratched my head when land sold for 300. then up to 1000. always have. now at 6000. i am just about bald. If you have the money or a large part of the price, you are probaby better off with it in land then a bank. To answer your question how can they make it pay, i really dont know. If it can be rented for 3-4 percent of the $6000. that would be 180.to 240. and acre less taxes of course, income per acre..If the interest rates go up to 6 percent then you are stuck(360. per acre rent.) I like my money in cd's. With $854,000. dollars I can get better interest rates then most of the smaller deposits of 10-20,000 dollar cds. Security is a big part of life now days.
Land rent around here used to be $150 an acre, pretty steady. Land cost either side of $2000 for farming land.
The past 18 months, went to $200 to $340 an acre rent. Typical farm land is in the $4500 range, tad more of late again.
Will see what happens in another year.
But, if you contracted for selling corn into 2009/10 at over $5 a bu, at 200 bu an acre, you can come out. For now.
Lot of cash here in MN from the past couple of years, builders are overbooked, housing is still at a record pace, machinery dealers can't get new machines. It's been a good time to be farming in these parts. If you can put 30-50% down, the payments are a lot less than land rent right now.
For now. The future is a bit murkier.
Think I saw that 140 in the papers, thanks for saying what it brought. Was currious if the ecconomic issues & lowering crop prices have affected things - not yet I see.
--->Paul
The past 18 months, went to $200 to $340 an acre rent. Typical farm land is in the $4500 range, tad more of late again.
Will see what happens in another year.
But, if you contracted for selling corn into 2009/10 at over $5 a bu, at 200 bu an acre, you can come out. For now.
Lot of cash here in MN from the past couple of years, builders are overbooked, housing is still at a record pace, machinery dealers can't get new machines. It's been a good time to be farming in these parts. If you can put 30-50% down, the payments are a lot less than land rent right now.
For now. The future is a bit murkier.
Think I saw that 140 in the papers, thanks for saying what it brought. Was currious if the ecconomic issues & lowering crop prices have affected things - not yet I see.
--->Paul
Pair-a-dice farms
Member
I talked to a realtor the other day. He said that here in N. Ar the land prices have gone down some. River bottom land that was up to $2500 has go back down to around $2000. That is still too much for this area unless your moving here from Kalifornia.
It seems to me like when the stock market goes down people start investing in land. I bought some ground in Macon Mo in 1993 for $273 per acre and all my coworkers told me I was nuts, said that land will never be worth anything. Land close to me now regularly seems to bring $2,000 to $2,500 for rough timber ground like mine. I heard the other day that a couple of doctors from St. Louis were in the area buying every piece of ground they could get their hands on and paying big money. I guess they feel safer investing that way than the market. Someone once said, "invest in land, they are not making anymore of it" or something like that. A couple years or so ago the St. Andrews golf course in St. Charles Mo sold to a developer for $80,000 per acre, that one caused me to do a double take but others have said it should have brought $100,000 per acre. I guess it all depends on location.
Rocky in MO
Rocky in MO
Colin King
Well-known Member
I'm guessing that must have been in SW Minnesota. Prices have been speculative there due to the ethanol boom.
In my family's part of central Minnesota (dairy country), good tillable acreage looks to be selling for about $2000/acre. Sometimes a bit lower. A recent sale actually went for $1,800, and some new listings are asking $1,500. That's down significantly ($500-$1,000), even from a year ago.
I have to say that this is good for me and my wife, as we intend to start farming in the next 5-7 years and will be in the market for some land. It's currently cost prohibitive for young farmers to start up.
Colin, MN
In my family's part of central Minnesota (dairy country), good tillable acreage looks to be selling for about $2000/acre. Sometimes a bit lower. A recent sale actually went for $1,800, and some new listings are asking $1,500. That's down significantly ($500-$1,000), even from a year ago.
I have to say that this is good for me and my wife, as we intend to start farming in the next 5-7 years and will be in the market for some land. It's currently cost prohibitive for young farmers to start up.
Colin, MN
Anonymous-0
Well-known Member
Several 40-80 acre parcels of good heavy soil in southern Stearns County went on bids this spring- no buildings on any. Went for $4100 per acre. Mostly Nicollet and Webster soils, like in southern MN.
FDIC will only insure you to $250,000, so you will have over a half a million of that lump exposed to loss.
If you had a lump of money like that, and you pulled it out of stocks or out of any of commodity speculation just before the current bust, where are you going to put that lump of cash? In 4 banks in CDs is fine, but if you had it in high-yield stocks & funds over the past 5 years, you won't be happy with 4% return minus taxes.
Put it in land, get 6% return as rent, and assume it will go up in value at some point over the next 20 years - you can cash it out on the high, and return to stocks or whatever.
This works for some people.
Hummm, I see a calf outside the window. Better go find out how he got there, & how many friends followed him....
--->Paul
If you had a lump of money like that, and you pulled it out of stocks or out of any of commodity speculation just before the current bust, where are you going to put that lump of cash? In 4 banks in CDs is fine, but if you had it in high-yield stocks & funds over the past 5 years, you won't be happy with 4% return minus taxes.
Put it in land, get 6% return as rent, and assume it will go up in value at some point over the next 20 years - you can cash it out on the high, and return to stocks or whatever.
This works for some people.
Hummm, I see a calf outside the window. Better go find out how he got there, & how many friends followed him....
--->Paul
The FDIC insurance limit is by each separate account. All you have to do is keep money in several different accounts, regardless of how much, and it all gets insured.
In regard to making money by leasing land - not my area of New York. You can never lease land for farming and even get it to pay the taxes.
In regard to making money by leasing land - not my area of New York. You can never lease land for farming and even get it to pay the taxes.
rodgernbama
Member
Usually land sells that high or higher around here it's so developers can subdivide it in 1/2 acre lots that sell for $25,000.00. I don't see how you could pay that for land and ever come out farming. My uncle who is 80 years old told me he was offered $100,000 for 20 acres several years ago by a developer. Told me he'd rather keep it than give part of it to the government.
It goes by seperate bank - at least it did when the limit was $100,000. You lump all accounts at a bank (not physical location either all accounts in any WellsFargo combined for example) together should be under the limit.
If they changed that with the recient actions, then my bad - but it has always been per bank, not per account.
--->Paul
If they changed that with the recient actions, then my bad - but it has always been per bank, not per account.
--->Paul
Formerly PaMike
Member
Hahahah....Try $20K an acre near me. Thats for an 80 acre farm. The guy is going to put up a cow barn and milk. His dad has a nice size herd and is backing him....
Doug in IL
Member
The FDIC limit is well and good as far as it goes. It will cover you as long as there are sporadic bank failures. In the event of wide spread bank failures, you are out of luck. There will not be enough money to cover everyone's losses.
Anonymous-0
Well-known Member
Public auction on a farm with very very limited buildings. $7,500.00 and it went to a grain farmer who has several farms. It is going to be croped no doubt, not much chance of homes going on it.
BillinCentralMO
Well-known Member
I think you are wrong. It is $100,000 per person not per account.
730 virgil
Well-known Member
- Location
- IL Wis state line near Monroe Wi
77 acres about 1/2 mile west on me sold for 306,600
some of it lays good some is steep slope.
some of it lays good some is steep slope.
Traditional Farmer
Well-known Member
- Location
- Virginia
With grain prices falling like a rock there should be some good deals on farm land at the Repo sales next year.
No, I am not wrong and it's pretty easy to verify. It goes by each account. You can have 20 million in cash laying around and have it all FDIC insured. Just make sure you open a lot of accounts at different banks and don't exceed the limit in each one. The original 100K limit, per account was also doubled, sometimes tripled if it was a joint account - like for a husband and wife.
From the Federal FDIC documents:
"The basic insurance amount is $250,000 per depositor, per insured bank."
"Deposits in one insured bank are insured separately from deposits in another insured bank."
"Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured."
From the Federal FDIC documents:
"The basic insurance amount is $250,000 per depositor, per insured bank."
"Deposits in one insured bank are insured separately from deposits in another insured bank."
"Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured."
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