Corn Prices / Land Prices / Fundraising

**kingcy** · 05-29-2008, 06:37 PM

Originally Posted by CTTB78

With land values soaring, what is the average rent/acre for prime Iowa ground? Just curious being that I have been away from it so long.

$300 and some if it is not so prime is going for that price.

**jbhtexas** · 05-29-2008, 06:59 PM

Originally Posted by kingcy

My point is there are not a lot of get rich guick land deals out there or selling for a lot over market value. Yes land prices have increased over time with a few decreases. If the only reason you keep the ground the rent payment and you dont want to put money back into or have anything else to do with it why keep it?

I keep mine because it is presently appreciating in value, it pays a nice constant rate of return via rent, and I have good stewardly renters. The stock market can go up, down, or be flat, and I still get income from the rent.

Land is no different than any other asset. If it appreciates and pays a decent constant rate of return, why not keep it?

**kingcy** · 05-29-2008, 07:18 PM

Originally Posted by jbhtexas

I keep mine because it is presently appreciating in value, it pays a nice constant rate of return via rent, and I have good stewardly renters. The stock market can go up, down, or be flat, and I still get income from the rent.

Land is no different than any other asset. If it appreciates and pays a decent constant rate of return, why not keep it?

Yes but you do have to put some money back into land. If you are not willing to do that why own it. Some people think all they have to do is sit back, collect rent, and expect top dollar for land that needs work. If you do what is needed to improve the land then yes there is no reason not to own it.

**Bobber** · 05-29-2008, 07:20 PM

I've worked in the ag field for a long time. Times are good right now and people are making money. We need to enjoy that because nothing last forever and I remember a lot lean times, and I'm sure they'll come again.

I think owning some farm ground is a good investment. It's a hedge against inflation and has generally had a postive appreciation rate over the long term. It will add diversity to any investment portfolio.

You should keep on buying stock however as long term, they'll be good for you too.

I hope ISU gets a few more donations because of the current good times in the Ag. Economy, but they still have some major pie on their face from ignoring some land donors in the past who specifically stated they did not want the farms sold that they were donating to ISU.

**jbhtexas** · 05-29-2008, 07:21 PM

Originally Posted by kingcy

Yes but you do have to put some money back into land.

Well, that's true for most any kind of rental property, whether it is farmland or an apartment complex. Granted, many landlords of all kinds of property don't reinvest...

**bellzisu** · 05-29-2008, 07:31 PM

Originally Posted by kingcy

But the acreage sitting half a mile down the road just saw its value go through the floor.

Well... and 3/4 it doesn't have an effect.... for everytime you find an example it does. I'll find one it doesn't.

Sorry, but if people don't like ag... Then don't live in the country.

**kingcy** · 05-29-2008, 07:39 PM

Originally Posted by bellzisu

Well... and 3/4 it doesn't have an effect.... for everytime you find an example it does. I'll find one it doesn't.

Sorry, but if people don't like ag... Then don't live in the country.

I farm so I do like ag. I have no problems with hog buildings but it seems everyone wants them but never wants one in their back yard. There will always be things that devalue land and increase the value of land. My point was and still is there are things that can devalue your land. Buying land in not always a sure money maker, just like anything else.

**bellzisu** · 05-29-2008, 07:49 PM

Originally Posted by kingcy

I farm so I do like ag. I have no problems with hog buildings but it seems everyone wants them but never wants one in their back yard. There will always be things that devalue land and increase the value of land. My point was and still is there are things that can devalue your land. Buying land in not always a sure money maker, just like anything else.

Ohhh... Gotcha... I see what you are saying... I always advise my customers to be mindful of the neighbors. It doesn't always happen and thats when I get pegged as the a-hole.

My rules.... Put it close to your place. Our in a very remote area. Always inform your neighbors and let them know your intentions. That way whether or not they like it, they at least know.

Other then that... Its good to see farmers are making money. Well grain farmers. Livestock is still marginal at best.

It would be nice to see farmers making millions of dollars and donating it back to the school, but that doesn't really happen. Farmers are just making up now for several bad years.

Like my uncle always said about farming. You have to learn how to live in debt.

**CYKOFAN** · 05-29-2008, 08:50 PM

At anywhere near $300 cash rent per acre that would be a great income for somebody that inherits farmland. I love the family farmer, I grew up one myself. What gives farming a bad name is when some big farm owners lay on the beach while they collect big cash rent checks and big government checks. A few weeks ago on the news they profiled a former Dr. in Hollywood who owns several thousand acres in Illinois, makes a tremendous profit from cash rent while he lays on the beach, and collects close to a million dollars in government money for I assume set aside or subsidies of some kind. It's the huge farms (usually corporate) that rake in the huge government checks and at a time like this when prices are so high, it's crazy.

**kingcy** · 05-29-2008, 09:03 PM

Ted Turner is one of the biggest takers of goverment farm checks. Like he needs the moneny, the only reason he owns land is so he can save the buffalo. How would you like to bid for land against him?

**CYKOFAN** · 05-29-2008, 09:16 PM

I like to look at buffalo herds so I'll give Ted a pass.

**Psyclone** · 05-29-2008, 09:20 PM

Originally Posted by cstrunk

Great post. I think while many people are caught up in the "prices are so high, farmers are getting rich" while forgetting that in farming there is nothing guaranteed and you have to ride out the low times when you can't enjoy times like these. The worst part of farming is the risk involved.

Not to disagree, but name one occupation where there isn't risk. Farmers are probably analogous to small business owners. The number of small businesses that don't make it is traditionally very high. There is also no guarantees for those that are employed by big companies. Things may seem okay one day, and they put you out on the street the next - and for many of the technical jobs in Iowa, an individual may have no where to go but leave the state to find employment.

**farmerbrent** · 05-30-2008, 09:46 AM

Originally Posted by Psyclone

Not to disagree, but name one occupation where there isn't risk. Farmers are probably analogous to small business owners. The number of small businesses that don't make it is traditionally very high. There is also no guarantees for those that are employed by big companies. Things may seem okay one day, and they put you out on the street the next - and for many of the technical jobs in Iowa, an individual may have no where to go but leave the state to find employment.

I was just trying to answer the question of why farmers ***** and complain so much even when they are making a very good living. Not "who has a riskier job?" I understand that everyone has risk. What is here today can be gone tommorow in every occupation or life. (Parkersburg). We all need to be thankful for the good times and be prepared for the bad. Anyway, complaing is just human nature. And for some reason we all have this thing about making sure that you know that "MY life is harder than yours", "No MY life is harder than YOURS". Not sure why it takes so much good to make up for a little bad. Human nature has its quirks. I guess if we didn't like to complain so much, we wouldn't have Cyclone Fanatic. So maybe complaining is good. No, wait. It's bad. I guess I really don't know anything other than there is a God. And I'm not Him.

**dundermifflin** · 05-30-2008, 03:44 PM

Originally Posted by Bobber

I've worked in the ag field for a long time. Times are good right now and people are making money. We need to enjoy that because nothing last forever and I remember a lot lean times, and I'm sure they'll come again.

I think owning some farm ground is a good investment. It's a hedge against inflation and has generally had a postive appreciation rate over the long term. It will add diversity to any investment portfolio.

You should keep on buying stock however as long term, they'll be good for you too.

I hope ISU gets a few more donations because of the current good times in the Ag. Economy, but they still have some major pie on their face from ignoring some land donors in the past who specifically stated they did not want the farms sold that they were donating to ISU.

Iowa State sold some farm land that was donated to them? What was Iowa State using the land for? Did not realize this can you give some specifics?

**Bobber** · 05-30-2008, 06:59 PM

Originally Posted by dundermifflin

Iowa State sold some farm land that was donated to them? What was Iowa State using the land for? Did not realize this can you give some specifics?

This happened a few years ago and the exact details escape me. I do know Dr. Jiske was still President of ISU.

I believe a lady gifted her farm to ISU and I think it was supposed to be for the benefit of the Ag. College. One of her wishes was that it would not be sold. Well to make a long story short, the University did sell the farm and if I remember right the money went to the general fund and I'm not sure if the Ag college got any good out of it. There was a lengthy investigation after this occured and if you talk to Alumni folks at any of the state University's they'll be able to tell you about the way this matter was mishandled by ISU.

Now I can understand that some of the financial "experts" who work for the ISU may think there are better and more liquid investments then land. I'm fine with them then selling the farm if the donor doesn't care. In this case the lady did, but she was dead when this all happened. So basically she went to here grave thinking it would be handled one way and it wasn't(now that would make me roll over in my grave!)

Sorry if this got wordy, but the whole deal upset me at the time and still does. If I'm every in the same position, I'm not sure I'll make a gift to ISU.