OT - Farm Land Price Per Acre

Bill VA

Well-known Member
Just curious - what is the average price for farmland per acre in your area?

Corn/beef prices suppressing prices or other factors making it go up or down?

Thanks!
Bill
 
Farming value has almost no influence on land in my area starts at $20,000/acre and up,I've seen 5 acre lots go for $350,000 in the right place for a house.Commercial land is off the charts.
 
Was about 8500-11,000 /acre here in MI a couple years ago. Now have heard from 1,400-4,500. Unless you are unfortunate enough to live near a foreign dairy. They will basically pay whatever they hate to, to get a piece of land to dump sh!+ on.

Ross
 
We're assessed at $2700 true cash value. Very little changes hands,the last that did was at auction a year ago. I don't know absolutely for sure,but I've heard it was $3700. Just west of RBoots in mid Michigan.
 
Depending on how large a parcel, how good the soil is, how much slope, how far up from the lake plane (shorter season and generally more clay), and how much development pressure: anywhere from 3-20k per acre. Fellow just down the road has had 5 acres of undeveloped swamp land for sale for 5k per acre for 3 years. It hasn't sold yet.
 
It's all over the place and always has been. Around here you can have vegetable ground, pasture land, swamp land, and mediocre row crop ground all within one mile of road. The better question is does the market have room to soften and I would answer yes. Locally, meat and milk were doing fantastic when grains were at historic highs. Now meat is steadily dropping and milk plummeted. The largest buyers in terms of number of acres locally are the Mennonites and their game has been seriously hampered by low milk prices. I could see a decade plus long slump in milk just like it was prior to several years ago. The Mennonites can do things that others can't but they have hard limits in terms of what the cows will produce and how much they can receive on price per hundred weight. Further, they are affected by the weather just like everybody else and have suffered through poor feed quality brought on by damp cool summers. I don't think the Mennonites have that many tricks left to push the land market like they have been.
In terms of property taxes it has caught up to everybody that when you pay extreme money for ground that the tax assessor tends to think that the assessment in general needs to reflect that. Paying more on property taxes has reduced available cash along with lower commodity prices which leaves considerably less in the war chest to play keep away from your competitors when 50 or 100 acre bite sized parcels come up for sale.
 
A year ago it was wild but I think with an election year coming up some of the speculators are getting cautious about government payments. Amish were pushing it as they try and get whatever government money they can get there hands on. It's interesting when they lock up land pending financing most guys have caught on to what that meant plus a lot of shady deals. But good land is around 10 thousand plus an acre of poor land at estate sale couldn't get 2. A lot of the bigger more cautious guys have found out renting is a better option than buying so that backs off the land price but keeps the rents up
 
I'm waiting on 225 acres close to the home place to come down. There's a lot of land all priced at $3500 and none of it is moving.
 
Do they need to own all the land that their manure management plan requires to site the dairy? Here, they need to have enough acres to apply at a given rate per acre...if not owned or rented, they get neighbors to agree to accept applied manure. Some of it is sold to those folks. All is injected with the applicator. Most is done with a hose drag system within a couple miles of the dairy, but some is trucked with road tankers to distant customers, and injected.
 
In SW Ontario, good land has not backed off. Anything offered last year at 10k per acre was sold quickly, further south near London, 15k sold fast for good land. This year, the pace is a bit slower....one 100 acre parcel near us bare land, level, fair to good drainage, clay loam, no buildings on a main highway backing the lake, no water frontage or development permitted is listed for 12k per acre, for several months.Not sold yet... Ben
 
In my area land peaked out at 10,00 per acre for good farm land . very little land moving now , and I know of one farm near me that could be had for 7,500 per acre . It is a square 100 acres , but the house either needs to be gutted or pushed down . Fella has turned down $730,000 , cash . Our milk price has slipped off too, and crop price stinks , beef is back in the toilet , and the short term future looks bleak . What a difference a year can make .I would wager some may have a hard time holding on to some of the land purchased in the last 3 years. Bruce
 
I bought 40 acres this winter that bordered one of my fields for $2000/acre. Very easy to tap into existing water line to tee off of it to run another center pivot there. In northern Michigan.
 
I don't think they need to own the land they spread manure on. Most people want them no where near their land, compacting it to a concrete like state. And they don't want any EPA trouble associated with them, as it is running in the ditches, but I believe they buy their way out of it. So, they spread on on a lot of their own land, leased land, and sell it to others.

Ross
 
In my area of southwestern Missouri the average price is around $3000 per acre with a range of 2500 to 4000...
 
Southwestern Ontario county average is in the $12,000 to $15,000 range. Canadian funds. Some of the heavier ground sells for less, some of the better ground sells for more. Also depends who your neighbours are, have a couple of big grain operations driving up prices and a couple of livestock guys also.
 

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