FARM Cropland values soar by 15% in Midwest and Plains

Marie

Marie

Veteran Member
www.agriculture.com

Cropland values soar by 15% in Midwest and Plains

High commodity prices and low interest rates fueled a sharp 15% increase in the value of cropland in the Midwest and Plains in the third quarter.
www.agriculture.com www.agriculture.com

Cropland values soar by 15% in Midwest and Plains
11/24/2021

High commodity prices and low interest rates fueled a sharp 15% increase in the value of cropland in the Midwest and Plains in the third quarter, according to surveys of ag bankers by four regional Federal Reserve banks. “Alongside prospects for further strength in commodity markets, the outlook for farm finances and agricultural land values through the end of 2021 remained strong,” said a summary of the surveys.

“The value of unirrigated cropland increased by an average of about 15% across all participating districts,” said the report written by Kansas City Fed economists. It was the highest gain since 2013. The largest increases were in Iowa, up 28%; Minnesota, up 26%; and South Dakota, up 23%, compared with values in the third quarter 2020.

Despite concern about rising costs of inputs such as seed and fertilizer, ag bankers expected farm income and credit conditions to remain strong through the end of this year. The surge in land values bolstered farm balance sheets. Land accounts for 80% of farm assets.

“The surge in farm real estate values was consistent across nearly all states,” said the report. “The value of nonirrigated cropland increased nearly 10% or more from a year ago in all states with available data, except North Dakota,” which had a 4% gain. “Providing support to agricultural real estate markets, interest rates on farm loans remained historically low.”

Conducting the surveys were the Federal Reserve banks in Chicago, Kansas City, Minneapolis, and Dallas.
 
Samuel Adams

Samuel Adams

Has No Life - Lives on TB
Mostly.


I’m just east and south of some of the craziest, and I occasionally work with/for a couple of the farmers who bid to win those insane auctions.
 
W

WalknTrot

Veteran Member
Cacheman said:
Mostly investors buying the land and not the farmers that work it.
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Yeah, but the investors will find a farmer to work it, and hopefully he won't get screwed.
Anything with REAL, lasting value is going to become a hot item.
A good lesson coming up (haha...for those who didn't live through the Ford/Carter years) on what HAS real value.
 
M

Murt

Veteran Member
I bought 17 acres 4 or 5 years ago
there was a 40 acre tract that borders mine that just sold for double what I paid for mine per acre
and that land isn't as good as mine
 
To-late

To-late

Membership Revoked
It’s up in price because the very rich like gates, and others are buying it.
once the elite own all the farm land, people will be forced to
live in the cities and starved.
granting the rich elites even more power.
 
Marie

Marie

Veteran Member
Range of price per acre here are $3000 to $10, 000 an acre here. No way to make money on that mortgage. Most farmers are BIG here. Little guy gets cut out.
 
Samuel Adams

Samuel Adams

Has No Life - Lives on TB
Thunderbird said:
The home farm resold a few months ago, BIL bid on it, could not meet the asking price. Sold to investors.
Click to expand...

On US Land Patents: America’s forgotten Supreme Law of the Land....

“Senator King of New York said "... it (the Act) is calculated to plant, in the new country, a population of independent, unembarrassed freeholders ... it will put the power in every man to purchase a freehold, the price of which can be cleared in three years ... it will cut up speculation and monopoly ... it will prevent the accumulation of an alarming debt, which experience proves never could or would be paid." In 1862, the Homestead Act. in Section 4, provided that "no lands acquired under the provisions of this Act shall in any event become liable to the satisfaction of any debts contracted prior to the issuing of the land patent."
 
A

anna43

Veteran Member
Land has topped $20,000 per acre in Iowa. That is usually a neighbor buying the land to expand his farm.

In Dallas County, Iowa farm land goes for crazy amounts to developers who get the land rezoned and build pricy houses on it. Some of the best cropland in the world is being paved over and houses built on it. Its like a virus spreading out from the metro Des Moines area.
 
Marie

Marie

Veteran Member
anna43 said:
Land has topped $20,000 per acre in Iowa. That is usually a neighbor buying the land to expand his farm.

In Dallas County, Iowa farm land goes for crazy amounts to developers who get the land rezoned and build pricy houses on it. Some of the best cropland in the world is being paved over and houses built on it. Its like a virus spreading out from the metro Des Moines area.
Click to expand...
Here too
 
packyderms_wife

packyderms_wife

Neither here nor there.
Samuel Adams said:
Crazy.

Cuz it was already crazy.


Seen Illinois black flat ground go for $15,000, +or-...... what’s the top end, now ?
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Here in Iowa IIRC the top bid at one auction was just under $75K a few years ago, Iowa. The piece I was hoping to snag went for $50K an acre, it was 200 acres. Scuttlebutt is china bought up a lot of these parcels and as such were able to let the price go that high. I wouldn't be surprised if bill gates was also one of the bidders.
 
packyderms_wife

packyderms_wife

Neither here nor there.
anna43 said:
Land has topped $20,000 per acre in Iowa. That is usually a neighbor buying the land to expand his farm.

In Dallas County, Iowa farm land goes for crazy amounts to developers who get the land rezoned and build pricy houses on it. Some of the best cropland in the world is being paved over and houses built on it. Its like a virus spreading out from the metro Des Moines area.
Click to expand...

Same up here in Story and Boone Counties.
 
Tristan

Tristan

Has No Life - Lives on TB
Marie said:
www.agriculture.com

Cropland values soar by 15% in Midwest and Plains

High commodity prices and low interest rates fueled a sharp 15% increase in the value of cropland in the Midwest and Plains in the third quarter.
www.agriculture.com www.agriculture.com

Cropland values soar by 15% in Midwest and Plains
11/24/2021

High commodity prices and low interest rates fueled a sharp 15% increase in the value of cropland in the Midwest and Plains in the third quarter, according to surveys of ag bankers by four regional Federal Reserve banks. “Alongside prospects for further strength in commodity markets, the outlook for farm finances and agricultural land values through the end of 2021 remained strong,” said a summary of the surveys.

“The value of unirrigated cropland increased by an average of about 15% across all participating districts,” said the report written by Kansas City Fed economists. It was the highest gain since 2013. The largest increases were in Iowa, up 28%; Minnesota, up 26%; and South Dakota, up 23%, compared with values in the third quarter 2020.

Despite concern about rising costs of inputs such as seed and fertilizer, ag bankers expected farm income and credit conditions to remain strong through the end of this year. The surge in land values bolstered farm balance sheets. Land accounts for 80% of farm assets.

“The surge in farm real estate values was consistent across nearly all states,” said the report. “The value of nonirrigated cropland increased nearly 10% or more from a year ago in all states with available data, except North Dakota,” which had a 4% gain. “Providing support to agricultural real estate markets, interest rates on farm loans remained historically low.”

Conducting the surveys were the Federal Reserve banks in Chicago, Kansas City, Minneapolis, and Dallas.
Click to expand...


In other news, the Dollar will buy you 15-50% less product than 18 months ago, depending on sector...

Things that make ya go "Hmmm"... :hmm:
 
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