Wife and I are at the point where we have some money to work with and invest. We are both employed and are secure in our jobs. Through our jobs we have the retirement plans the employers offer to each of us and match, as well as our own private retirement account too. We are now considering purchasing some land as an investment. It is 35 acres of land, with 30 acres tillable and 5 acres of woods. No low land to speak of. Tillable land is all planted into hay right now. It has highway frontage on two sides. I'm thinking land is at about it's lowest value right now, and that it should start to climb in the not too distant future. I'm thinking I could buy this piece for about $30,000. Current owner is ready to retire from farming and is eager to sell. I've been approved for the financing I'd need to cover what I don't have in cash, and figure I can have it paid off in 5 years. Is there any reason why this would not be a good investment? Having never purchased land before other than from my grandmother, this is a new game for me to play. Thanks for any advice.
- Thread starter M Nut
- Start date
You obviously live in a different place than me. 
That property woulda cost $100,000 5-6 years ago 'here', and would now cost $250,000 this year. There isn't much you said that would be true 'here'.
Is farming common where you are, is the ground a regular, rectangular shape for tillage, can the land support row crops where you are, what is a common rent in your area? What are common yields in your area?
;Here' your numbers would kick in an examination by the govt to see if you are trying to hide assets between buyer & seller, so obviously we are in different places, so I can't say if that is a good deal or not, but 'here' it would be stealing on your part.... Tillable farm land is selling for $6,000 - 10,000 an acre, so you could buy 3-4 acres 'here' with your dollars.
--->Paul
That property woulda cost $100,000 5-6 years ago 'here', and would now cost $250,000 this year. There isn't much you said that would be true 'here'.Is farming common where you are, is the ground a regular, rectangular shape for tillage, can the land support row crops where you are, what is a common rent in your area? What are common yields in your area?
;Here' your numbers would kick in an examination by the govt to see if you are trying to hide assets between buyer & seller, so obviously we are in different places, so I can't say if that is a good deal or not, but 'here' it would be stealing on your part....
Tillable farm land is selling for $6,000 - 10,000 an acre, so you could buy 3-4 acres 'here' with your dollars.--->Paul
eurofarmer
Member
Buying land is a good investment. If your bank falls over in the next month you lose your saved money..
Over the last 100 years price of land has always been going up, maybe a small dip sometimes, but always going up.
My mom and dad just bought some more land. They have no faith in the bank and the euro overhere at this point.
Over the last 100 years price of land has always been going up, maybe a small dip sometimes, but always going up.
My mom and dad just bought some more land. They have no faith in the bank and the euro overhere at this point.
Central part of Minnesota. Yes, corn can be, and has been grown on this land with yields at about 100 bushels per acre, so I'm told. It last had corn on it about 20 years ago. Has been turned over and reseeded into hay a couple of times since. Land is a straight rectangular piece that would be easy for tillage. I've been told that rent value would be about $50 per acre around here. Land has been for sale by owner for a couple of months.
I really don't know much about your local land market so I will not comment about that. I will say that land prices are not immune to going down despite what any experts may say. I also will say that people got their hopes up high during the building boom of the 1990's/ early 2000's here and had set astronomical selling prices on ground they had near a major highway. They are still waiting to get the prices paid that were being offered 15 years ago. How active is development in your area honestly. If you are buying this to potentially sell for development I would start attending various town board and zoning meetings to gauge what is really going to happen versus any coffee shop talk. Best of luck.
James Williams
Well-known Member
You cant touch farm land here in WV for that
jimmy
jimmy
Ultradog MN
Well-known Member
- Location
- Twin Cities
Tell me where it is and I'll be up there tomorow.
Up to few years ago, farm land here in central NY could sometimes could be bought for $500 an acre - but those deals are rare. $2000 now is more the norm. I bought 66 acres a few years ago - half tillable fields and the other half mature hardwoods (white ash, hickory, hard maple, red oak). Paid $32K for all. Compared to the 8 acres I bought in the Adirondacks for $60,000 - the farm and woods here was a bargain.
M Nut, there is a place over here near Battle Lake, 30 acres that's up for sale. 1/2 tillable, older trailer house on it, new well & septic.....asking price is 250,000. Owners says she'll take 180,000. Now she is high even for our area so if you can get that for 30K when according to what I looked up a little while ago for 500 dollars less per acre than the average price I'd jump on it!
Rick
Rick
LOL, well not this particular piece I'm not going to disclose, but there is land for sale all over in this area at similar prices. It's not like this is a once in a lifetime deal or anything. It's just that I've wanted to try investing in real estate, and this one piece happened to catch my eye so I pursued it a little more last week while off from work between the holidays.
No, I checked all that out, and actually there is land for sale at similar pricing all over in this area. It's not like it is a deal that is simply too good to be true. I just happened to like this piece of land. There is actually 40 acres on one side of my farm for sale, and 80 acres on another, at similar pricing, but I don't care for the land and it is not in fields. It is pasture/hunting land.
If you can buy farm land for $850 dollars an acre the owner must not be doing a very good job of marketing it! This post almost seems like it was written in 1975 or something. People pay $50,000 dollars for a new diesel pickup that's worth $10,000 dollars after 5 years so I wouldn't even hesitate to buy it for $30,000. Better hope the owner doesn't read tractor talk!
Tony in Mass.
Well-known Member
Water. Too deep, you are into a well costing more than the land. Nasty minerals, you will be buying filters for ever. Fracked by an oil or gas driller, you might as well use the place as a hunting camp. Talk to the neighbors, taste their tap water, call local well drillers and talk to the ag agent or health dept.
Or better yet, wait for rusted nuts to read this post.
Or better yet, wait for rusted nuts to read this post.
I do remember watching the dairy farms for sale in Hoard's Dairymen back in the 70's, when I was still thinking about dairying, and I seem to remember that you could buy turn-key dairies in upstate New York, with all cattle and machinery, house and everything, for less than a thousand an acre. 125 acres, 50 cows, 50 heifers, 4 tractors and all silage, tillage and hay equipment, older 4 bedroom house, 50 tie stalls, $125,000. Talked to my dad about it- he opined that it would be more of a work factory than a farm.
New wife wasn't favorable to the idea either, and the more I thought about all that snow, and all that work without enough income to have a hired man, the less appealing the idea became. In retrospect, sure glad I didn't do it.
New wife wasn't favorable to the idea either, and the more I thought about all that snow, and all that work without enough income to have a hired man, the less appealing the idea became. In retrospect, sure glad I didn't do it.
LOL It's a safe bet he does not (not into technology by any means), but again it's not like I can't buy other land for this same price in my area, I just happen to like this particular piece. I know all my neighbors know it's for sale, as it is kind of the "talk" of the neighborhood right now, as it always is when a long-time farmer calls it quits.
I am 82 years old and have seen land sell for one dollar (dust bowl days)to 50 thousand dollars per acre. all here in Weld county Colorado.
Buying land has all ways, ALL WAYS, been a right thing. Only stipulation I put on it is is you can make the payment with out loosing some thing else. Or where they would tax you out of reason.
Inflation is going to continue at a even faster rate.
Go for it.
Buying land has all ways, ALL WAYS, been a right thing. Only stipulation I put on it is is you can make the payment with out loosing some thing else. Or where they would tax you out of reason.
Inflation is going to continue at a even faster rate.
Go for it.
teddy52food
Well-known Member
That is pretty sandy ground, isn't it?
Fordfarmer
Well-known Member
Farmland is between $800-1200 around here (N/W WI), though if you drive 30 miles west or south, prices climb very quickly...
Anonymous-0
Well-known Member
Mike, I don't know where you live, but around here I believe all of the smaller dairies have closed. And some that milked 200+ cows also have closed. The milk price just isn't there to produce a living without huge volume.
I knew several families that had small dairies in the 60's and 70's. They did OK, but worked awfully hard all the time. Then regulations changed and their old style operations were required to be extensively changed for them to continue. A few farms invested lots of money to come into compliance, but most closed up their dairy operations.
Did you ever figure that you had dodged a bullet? The idea of dairying is appealing, but like lots of other farming occupations, it probably isn't an idea that you are glad you followed through on.
I knew several families that had small dairies in the 60's and 70's. They did OK, but worked awfully hard all the time. Then regulations changed and their old style operations were required to be extensively changed for them to continue. A few farms invested lots of money to come into compliance, but most closed up their dairy operations.
Did you ever figure that you had dodged a bullet? The idea of dairying is appealing, but like lots of other farming occupations, it probably isn't an idea that you are glad you followed through on.
Dave from MN
Well-known Member
Hey, MNut, we are in the market for some land "up north" , your area counts as that to us. Looking for hunting land, but nothing too low. Also, looking for a peice with some water front on a smaller lake to retire on in , hopefully, 20 years, but we are looking always. Shoot me an email if you happen to see anything. You did get my new email address I hope.
rodgernbama
Member
I'd buy it if I was in your position. That land in my area would go for $150,00-$180,000. I don't think the value of land has went down here. House's yes, but not land. I've never seen the price of land go down.
Heard this piece brought $9900 an ACRE. That's high for around here for sure.
31.34 acres at auction
31.34 acres at auction
I'm thinking that you're west of Spokane, toward Reardan or Cheney. Same thing here (Chehalis- 30 miles south of Olympia)- very few dairies left, and they're mostly big, unless its someone who inherited and never had any debt.
Yep, I did dodge a bullet. . . I'd have been broke years ago.
Yep, I did dodge a bullet. . . I'd have been broke years ago.
You mean you havent written the check?
The only regrets I have had in buying land, and I've bought land for 400 an acre and 40,000 an acre is land that I did not buy. Even a tract that Im in way too deep in to ever come out by any measure was still a good investment for 'me'.
I passed on 185 acres that I really likedfor 180,000 in the 1987. Id just bought 230 acres and was in way deep on a demand note and just didnt want to stretch any thinner. In 2005 it sold for 9 million, across the road is a new super walmart. Two other farms that are close to mine sold reasonable in the last 20 years. I just didnt want to get that stretched on cash flow so I didnt buy them. Should a, would a, could a's will eat you alive. Seen lots of houses sell for the opening bid in the bottom of the recent crash. To this day I dont know why I didnt buy them. Nice houses in decent neighborhoods, small, older, but well maintained. 140K could have bought 3 of them and they right now rent for 950 a month each. ....
Land is the only 'real' investment.
The only regrets I have had in buying land, and I've bought land for 400 an acre and 40,000 an acre is land that I did not buy. Even a tract that Im in way too deep in to ever come out by any measure was still a good investment for 'me'.
I passed on 185 acres that I really likedfor 180,000 in the 1987. Id just bought 230 acres and was in way deep on a demand note and just didnt want to stretch any thinner. In 2005 it sold for 9 million, across the road is a new super walmart. Two other farms that are close to mine sold reasonable in the last 20 years. I just didnt want to get that stretched on cash flow so I didnt buy them. Should a, would a, could a's will eat you alive. Seen lots of houses sell for the opening bid in the bottom of the recent crash. To this day I dont know why I didnt buy them. Nice houses in decent neighborhoods, small, older, but well maintained. 140K could have bought 3 of them and they right now rent for 950 a month each. ....
Land is the only 'real' investment.
Fordfarmer
Well-known Member
Right here where I am it's heavy clay. East of me it gets rocky, west and south it's some lighter, even sandy enough to warrant irrigating in some areas. If you plant 100 day corn here, you'll likely be chopping it. It MIGHT make grain if you get it in early and there isn't an early frost, but that would be a big gamble. Most guys here plant 75-85 day corn, and some 90 day. 150 bu./acre is good around here. More is possible, but it usually means buying lots of fertilizer. (or only looking at the yield monitor in the good parts of the field!)
t is true that land in the USA has always been a good long term investment. Long is the problem. Good for your kids or grandkids, but maybe & maybe not for you. Then there is our current push toward socialism, where the individual should not OWN the 'property of the state'.(quoted from post at 23:25:27 01/02/12) You mean you havent written the check?
The only regrets I have had in buying land, and I've bought land for 400 an acre and 40,000 an acre is land that I did not buy. Even a tract that Im in way too deep in to ever come out by any measure was still a good investment for 'me'.
I passed on 185 acres that I really likedfor 180,000 in the 1987. Id just bought 230 acres and was in way deep on a demand note and just didnt want to stretch any thinner. In 2005 it sold for 9 million, across the road is a new super walmart. Two other farms that are close to mine sold reasonable in the last 20 years. I just didnt want to get that stretched on cash flow so I didnt buy them. Should a, would a, could a's will eat you alive. Seen lots of houses sell for the opening bid in the bottom of the recent crash. To this day I dont know why I didnt buy them. Nice houses in decent neighborhoods, small, older, but well maintained. 140K could have bought 3 of them and they right now rent for 950 a month each. ....
Land is the only 'real' investment.
Aaron- Sign for it! details later, if you need them....what a wonderful opportunity for you and your wife and the girls! You have an excellent existing base with your farm, and years of experience.....good chance to build up to another level. I hope it all works for you!
You can bet if its the talk of the town, someone else is setting at home with a pencil and calculator racking their brain to see if they should buy it. Around here, A peice of land like that for that amount, no one would know about it until after the closing and the deal was signed, sealed and delivered.
The last time land was bought for $850 and acre around here was back in 1986 when dad and i bought the neighboring farm. It was only becasue the old timer that owned it was like a second father to my dad, as he had two other farmers offer considerably more for it after dad made the mistake of telling one of his buddies about the deal.
I had a good friend get screwed on a farm purchase back in the 1998 when he went around bragging that he could buy such and such place for 3000 an acre. No one saw the developer/realtor setting in the booth behind us, until he abruptly got up and left the diner. My friend didnt get to buy that land and now theres 180 houses planted on that farm.
My advice if you can afford it, buy it and live on it. There not making anymore land and its not getting any cheaper.
The last time land was bought for $850 and acre around here was back in 1986 when dad and i bought the neighboring farm. It was only becasue the old timer that owned it was like a second father to my dad, as he had two other farmers offer considerably more for it after dad made the mistake of telling one of his buddies about the deal.
I had a good friend get screwed on a farm purchase back in the 1998 when he went around bragging that he could buy such and such place for 3000 an acre. No one saw the developer/realtor setting in the booth behind us, until he abruptly got up and left the diner. My friend didnt get to buy that land and now theres 180 houses planted on that farm.
My advice if you can afford it, buy it and live on it. There not making anymore land and its not getting any cheaper.
Anonymous-0
Well-known Member
Actually, South of the Spokane Valley and not far from the Idaho border. There used to be at least 5 small to medium sized dairies fairly close to where I live. I don't think any of them milked over 50 cows, but they did OK for a long time. It was the regulations that came into effect and the continued low milk price that did them in.
The same thing happened to the chicken farms. Some folks still have small flocks, but the larger operations are gone, at least around my area. There was a chicken farm about a mile away that was fairly large, with about 5 long, metal buildings. That operation used to sell the liquid manure to local farmers, which they applied to fields with a big "honey wagon". It sure did stink afterwards, but that ground would have wonderful crops for years. But that chicken farm closed down 20-25 years ago and I never heard just why they quit. My guess is that it just didn't make enough profit with the system they had. The current owners use the buildings for boat storage now.
Now it's hard to find good cow manure for the garden. I have a friend who raises horses and mules who will load my trailer with their manure, but I have always thought cow manure was better, with less weed seeds making it through. Unfortunately I don't know anyone who is raising cattle any more.
My area has been changing for a long time, from rural to almost suburbia. The land has been broken down into acreages, and there are a lot more people. That's progress, but I guess I liked it better the way it used to be.
The same thing happened to the chicken farms. Some folks still have small flocks, but the larger operations are gone, at least around my area. There was a chicken farm about a mile away that was fairly large, with about 5 long, metal buildings. That operation used to sell the liquid manure to local farmers, which they applied to fields with a big "honey wagon". It sure did stink afterwards, but that ground would have wonderful crops for years. But that chicken farm closed down 20-25 years ago and I never heard just why they quit. My guess is that it just didn't make enough profit with the system they had. The current owners use the buildings for boat storage now.
Now it's hard to find good cow manure for the garden. I have a friend who raises horses and mules who will load my trailer with their manure, but I have always thought cow manure was better, with less weed seeds making it through. Unfortunately I don't know anyone who is raising cattle any more.
My area has been changing for a long time, from rural to almost suburbia. The land has been broken down into acreages, and there are a lot more people. That's progress, but I guess I liked it better the way it used to be.
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