Joe Burrow and Others purchasing Iowa Farm Land

[boone7247]

Just saw this on twitter thought I would throw it out there. I don't live in Iowa anymore is $48k an acre a realistic price?

Joe Burrow, Blake Griffin, Others Purchase First of Five Farms

Patricof Co is coordinating a farm purchase by a group of roughly 25 athletes for $5 million. The group will eventually buy four more farms.

frontofficesports.com

And for any farmers is a single digit return realistic here? A $5m purchase at 1% is a $50k per year return. Thats a hell of a return I would think on 104 acres of land. I guess maybe they will take land appreciation into account as well??

 

[Bret44]

Only way this is true is if it is a massive money laundering scheme, because there is no way this would be profitable for anyone.

 

[Al_4_State]

Just saw this on twitter thought I would throw it out there. I don't live in Iowa anymore is $48k an acre a realistic price?

Joe Burrow, Blake Griffin, Others Purchase First of Five Farms

Patricof Co is coordinating a farm purchase by a group of roughly 25 athletes for $5 million. The group will eventually buy four more farms.

frontofficesports.com

For farm land? No. That's development prices.

This will be a popular investment for athletes though. Raef LaFrentz bought some farmland in Mitchell County last year (north of St Ansgar near the MN border). I ran into him leaving the St Ansgar Casey's a few weeks later.

Random sidebar, but I just happen to see him out and about like 5 times a year. Granted, there aren't many 7 footers in Decorah, but it always surprises me.

 

[Clonefan32]

That's a crazy, crazy number.

Even looking for a "single digit return on investment" at that price... good luck.

 

[Bret44]

I didn't see $48k an acre mentioned in the article but if so, no--that's not at all realistic.

104 acres for 5 million is a shade over 48K/acre.

 

[20eyes]

Only way this is true is if it is a massive money laundering scheme, because there is no way this would be profitable for anyone.

Doesn't look like they're trying to make a profit...?

 

[Cyclone Aggie]

Realistic price these days is 15, 'maybe' upwards of 20k per acre. Price has gone up a lot. Maybe 10 years ago top Iowa farmland might go for 10k an acre.

 

[boone7247]

I didn't see $48k an acre mentioned in the article but if so, no--that's not at all realistic.

Even looking for a "single digit return on investment" at that price... good luck.

$5m/104 acres is more than $48k per acre.

 

[Clonefan32]

@boone7247 My bad, I didn't see the 104 acre figure in the article the first go-around.

 

[KennyPratt42]

I've got 104 acres they can have (probably with an equivalent or higher CSR2) for $2.5 million. And even at that price I'd be whistling to the bank.

 

[boone7247]

Hoping Front Office got this wrong and they are purchasing 5 farms for $5m total. Not a single 104 acre farm for $5m. That price didn't make sense to me.

 

[coolerifyoudid]

They know that Field of Dreams 2 has already been made, right?

 

[KennyPratt42]

Hoping Front Office got this wrong and they are purchasing 5 farms for $5m total. Not a single 104 acre farm for $5m. That price didn't make sense to me.

This feels the most likely explanation to me, the total investment pool is $5m and the first purchase is a 104 acre farm in Iowa.

 

[Cyclonepride]

I can deal with the Chinese doing it, but I draw the line at Blake Griffin

 

[cdnlngld]

If the soil conservationists are correct and we only have 50-60 years of agricultural life left in the soil, it will be interesting (not in a good way) as to what land prices will do. I'm no economist but what happens to a commodity as it is about to run out/become scarce? It shoots up in value!

However, in this case the commodity doesn't really run out, it just dies and becomes non productive. I would assume that as we approach this event, food prices will skyrocket up to the point of the event and thus so will land prices, but then the land will become utterly useless and worthless after the event. Those who stored food away will become kings as the rest of us (or our children/grandchildren/great grandchildren) die a slow death of starvation.

Edit: this is all assuming we haven't completely ruined our water supply and are still around at all.

 

[JP4CY]

I can deal with the Chinese doing it, but I draw the line at Blake Griffin

It's because he played for the land thieves isn't it

 

[CYdTracked]

Would be interesting to see if the land is in an area that could be developed within the next 10-20 years as that is about the only reason you would pay that much an acre. It says northern Iowa so that is pretty vague. I know some farmland near my parents in Dallas county that recently went somewhere around the 12-14k an acre range but it is actually farmland and nowhere near somewhere that is going to be developed.

Also know some people that have been farming for multiple generations just west of Waukee that finally caved in and sold some of their land to a development with the condition that they would be able to farm some land that developer owns just south of them that they aren't building anything on yet so they still are able to keep farming roughly the same amount of acres they were before they sold them the land.

 

[Statefan10]

For farm land? No. That's development prices.

This will be a popular investment for athletes though. Raef LaFrentz bought some farmland in Mitchell County last year (north of St Ansgar near the MN border). I ran into him leaving the St Ansgar Casey's a few weeks later.

Random sidebar, but I just happen to see him out and about like 5 times a year. Granted, there aren't many 7 footers in Decorah, but it always surprises me.

Raef LaFrentz has 4 sons that go to Decorah. Will be interesting to see how good they end up being.

 

[NickTheGreat]

He's probably buying it to make governmental tracking devices. The Bill Gates model.

 

[isufbcurt]

Maybe they are developing a resort, like on Yellowstone.