Quote:
Originally Posted by Iowanian
There are extenuating circumstances regarding most of those farm sales that go for big money. I know of one 40 that went for $29k per acre in NE Iowa.
Most times, when you're seeing those numbers larger than 10k/acre, which is still ridiculously high, it's because 2 neighbors are fighting over it, it connects to their farms, finishes a section/half section. Sometimes they just want it to square up the farm and get what's close, other times they're buying it so the other guy they don't like can't have it.
Either way, it will never pencil if they're not using a lot of already paid for acres to fund it.
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We have a farm west of waterloo and land has been selling near there over $12,000/acre all day long. I know one farmer personally who overpaid at 15k plus change. Another farm went at auction near waterloo for over 21k/acre. Rent for ag ground is easily fetching $350/acre and I've heard rents in the $500/acre range. We bought our first farm in 99 and rent was around $130/acre. Needless to say it has exploded.