buying farmland

Howard Parker · Jan 14, 2015

I have a chance to buy 50 acres for about $160000 no buildings just land I was woundering whats the best way to finance I here you need a large down payment? and most banks will run from you rather then finance land is in Illinois mostly tillable It also says under contract whats that mean? is that like contract for deed? would love a little hobby farm to use johnny poppers on say (PLOW DAY)!!!!

Allan in NE · Jan 14, 2015

Kind of an expensive toy, don't ya think?

But, whadda I know....

Allan

larry@stinescorner · Jan 14, 2015

was watchin the barretjackson auction,someone paid 320 thousand dollars for a 1940 ford hotrod pickup built by a guy name boyd coddington? now that,,,is an expensive toy!!!

Winchester1 · Jan 14, 2015

If it says "Under Contract" sounds like there is already a deal pending if the buyer meets all qualifications.

old · Jan 14, 2015

Do not know where you are but in this area that is about 3 times what it is worth but then here in Missouri prices for land are in the $1000-1500 per acre

Kent Petersen · Jan 14, 2015

Under contract most likely means it is rented out fore a period of time

glennster · Jan 14, 2015

your at 3200 / acre, if its productive ground, thats cheap. ground round me is 11-15k / acre. go to your county extension or fsa office and see how much is tillable, also what the average yields are on the property. for financing, farm credit or a local bank near the property may carry the note. figure on about 30% down. check and see if you can build on the property and any zoning restrictions. be sure it has ag zoning to keep the taxes down. you may need to rent the ground out if you cannot farm it. where abouts is the ground located? also check if it is in a flood plain. do your due dilligence before committing. and have an attorney familiar with farm purchases handle it.

Josh in Pa · Jan 14, 2015

Under contract means they probably have a signed agreement but have not closed yet. You will need a down payment, or land to use as collateral. Probably they will want 35%.
Josh

John_PA · Jan 14, 2015

If an ad for real estate says, "under contract," that means someone already bought it, and they are just waiting for the deal to go through. If the deal falls through, then it will be back on the market.

raw land here is $10,000 per acre.

GeneMO · Jan 14, 2015

(quoted from post at 17:32:39 01/14/15) Do not know where you are but in this area that is about 3 times what it is worth but then here in Missouri prices for land are in the $1000-1500 per acre

Rich, go about 75 miles north of where you are and it's selling for closer to $4,000 an acre.

Gene

IaGary · Jan 14, 2015

I saw where a few guys think it is high priced. I guess it all depends on the type of land it is.

You said mostly tillable. Poor yielding ground here in Iowa still brings $4000 an acre.Good yielding land is $10,000 or so an acre. If that land were close to me I would be jumping all over it if it is average to above average yielding land and mostly tillable.

Timber land is $2000 an acre plus here.

Gary

old · Jan 14, 2015

Yes I know some area can be higher but still bear land is cheaper then land with buildings

charlie n · Jan 14, 2015

Progressive Farmer posts highest land prices every issue.Usually northern Illinois rocks the world,but not this time.

Nebraska 80 acres $1,024,000.

Ohio 135 acres with 134 tillable $1,388,750.

Illinois didn't even make the 9K mark.That's odd.There was some ground a little north of me that sold for $7,086 per.1324 acres for $9,510,000.Two buyers.

Brian in MO · Jan 14, 2015

Old, I don't doubt you can buy land around you for that but I'm with Gene here in the North East corner of the state $3500-$4000 is a good starting point for anything and it goes up from there.

JD Seller · Jan 14, 2015

Well $3200 per acre is cheap for land around me but you did not say where in IL this land is. So it is hard to say whether or not it is a good price or not.

Most banks will want in the 25-35% of the purchase price as a down payment or other collateral that would be equal to that amount.

The term "under contract" can mean two different things. 1) The land has a purchase contract already for the sale but it is not finalized yet. 2) If the term "under contract" has a year after it then it usually means that the ground is under a rental agreement for that term. Example: The ground is under contract for 2015. It could also say under contract until 2016. Either of those terms means the farm ground is rented.

Check it out but it sounds cheap in today's market. I am beating that ground has issues. Low fertility or land locked. Something that is reducing it's value.

todd hamilton · Jan 14, 2015

Buy it, rent out 45 acres and play with 5

sd pete · Jan 14, 2015

Land around here sells for way more than that.

old · Jan 14, 2015

Of course what I own back when it was sold to my dad sold for $250 per acre but that has been a few years.

farmboy48 · Jan 14, 2015

Reading all this, I feel pretty good, I bought a 40 acre piece adjoining my other farm a couple years ago for 80k, and it has 30 tillable, with 10 acre farmstead with two Quonset buildings, 2 heated double garages, pig barn, barn and chicken coop. Just put a mobile home on the place, and I was set. NW ND

Dick ND

David G · Jan 14, 2015

Most of the time a bank will want 50% down unless they are real certain of the stability of the buyer.

Nick m · Jan 15, 2015

Green stone farm credit is the best thing going for farm land in the mid michigan area. Their interest rates are a touch higher than the rest, but they only require 20 percent down. If you have equity in something else, you can use that instead of cash toward the 20 percent. Usda offices have options also, but nothing moves fast there and it depends on funds/budgets on what loans are available.

Good farm land (stuff that will produce 200ish bushel corn) is starting to approach 10k/acre around here. You'd think that bubble would burst with lower crop prices, but hasn't slowed yet here.

Leroy · Jan 15, 2015

NO. under contract means that it has been sold pending all paper work goes thru. Rented w0uld not be listed like that, would be stated as currently being rented for period of time.

newfarmer9 · Jan 15, 2015

Seems cheap, around here (SW Ontario) if the land was all workable and decent tiling you wouldn't be able to buy it for any less than $500,000.

Mike (WA) · Jan 15, 2015

Fun to watch everybody argue about what "under contract" means. Fact is, nobody knows until they ask the guy- could mean about 3 different things, and IMHO, many people don't articulate very well when putting an ad together, so it could be most anything. I think the two most likely scenarios are a CRP contract, or under a lease contract with another farmer. "Contract pending" would be what I would expect if they have something in the works and are looking for a backup offer.

black · Jan 15, 2015

Up here in Northern Ont you can still buy good farm land for $1000.00 an acre . We see a lot of Menonites moving in from Southern Ont. reworking the old farms and doing very well .

Leroy · Jan 15, 2015

In Ohio that is the way it is mostly and just about everything under contract pending is a house only, no land involved. Not much land being sold here.

formenwhogrow · Jan 16, 2015

That place is sold if it's "under contract". Better luck next time. You never know though, the buyer may back out and you might get it.

GeneMO · Jan 16, 2015

(quoted from post at 18:54:55 01/14/15) Old, I don't doubt you can buy land around you for that but I'm with Gene here in the North East corner of the state $3500-$4000 is a good starting point for anything and it goes up from there.

Brian, where Rich is at the land is cheaper cause you dont get as much. An acre down there is really only about .6 acre. By the time you farm around the rocks as big as a small car. :lol:

Gene

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