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I was talking to a friend of mine and they mentioned that they were donating to ISU for Phase II and said 5 years ago they could not have done this but with the price of corn and land at an all time high it is possible. I would think this would be the case with a lot of possible ISU donors.
Just sold our family farm. Prices are crazy high! I can say that I am very comfortable right now! Going to donate to the cause but not enough to get the stadium name.
Lets just say you have a normal family farm size @ 1000 acres.
To keep it easy lets say you sold it for an average of $5000 an acre.
That is $5,000,000 without selling equipment, houses, sheds etc...
Of course you would pay some serious tax on it and probably split it a few different ways.
Farmers also like to spend money when they have it, so everybody selling ag-related products should be in good shape to help out.
Corn prices may be $5 and SB $12, but with rents, fuel, and inputs the way they are, profit margins may not be as high as we think.
as long as farmers didnt borrow on their land...it makes sense. the problem is when farmers borrow $$$ on their land based on the high prices of c and sb
Most farmers may farm over 1000 acres but they dont own that many. A few do but most rent over half their land. If you were to sell now the taxes would take a HUGE chunk of that money. But money is good now in farming, and it is a great time for ISU to do improvments from that aspect. Remember there are a lot of famers are Iowa fans too, that gets forgot a lot.Quote:
Originally Posted by HandSanitizer
Why is it when ever good times for farming is mentioned someone (usually a farmer) has to try to make it sound worse than it is. If someone is farming right now and not making money they should go to town and get a regular job because right now even the blind squirrels are finding nuts.Quote:
Originally Posted by kuney1
Quote:
Originally Posted by kingcy
If you were thinking about selling, I'd do it this year before the democrats get elected and raise capital gains rates. Right now they're not that bad at around 15%. When hillary or obama are president, they will be back in the neighborhood of 40%.
GREAT POINT! :notworthy:Quote:
Originally Posted by TykeClone
Even with high input costs you can still make good money farming currently.Quote:
Originally Posted by kuney1
If you are thinking about selling you should sell now before land prices start to drop as well.Quote:
Originally Posted by TykeClone
Please keep in mind that not every farmer lives in Iowa and farms prime $5000/acre land that receives ample rainfall. Several areas of the country are experiencing extended drought conditions. Hard to make money when nothing grows...Quote:
Originally Posted by cyeah
This is true--it makes me nauseous to think about it though.Quote:
Originally Posted by kingcy
Quote:
Originally Posted by cyeah
Well if I were a farmer, depending on my financial situation, I would concentrate on retiring debt. How many types of business pay for their inputs on the retail level but sell the product wholesale? I can't thing of one off the top of my head except for farming. Times are good now, but how long will they last? That's the question.
But you're right if you can't make it now, (unless you are heavily into livestock and are buying $6 corn) you might want to think about a new career.