Im looking at a piece of land in Iowa to buy, my qusetion is how much are leases in Iowa, being an out of stater I know i can not hunt it every year, but I would hope I could lease it out to help with some income, its 200 acres and its 50% tillable and 50% timber, it lays out nice for hunting, and has some nice deer on it. Its in Decatur county
JNRBRONC
Well-Known Member
Full farm or timbered acres only?
JNRBRONC
Well-Known Member
Hey, no problem. I'm not real familiar with how leasing works and didn't know if the landowners wanted paid for all acres.
A neighbor was getting around $3K/yr for 220 acres, mix of CRP and timber/brush.
DWilk
Active Member
Hunting leases are a fairly specialized/variable market. Size of farm, neighborhood, and quality of deer are going to be big influences. I would lease the hunting rights to the farm as a whole. $10/acre and up... Some areas pay much higher just gotta find the right person.... Right, wrong, or indifferent....
Hardwood11
It is going to be a good fall!
buck
Jerred: You can hunt it every year if you want, you just have to shotgun hunt in the years you do not bow hunt...
With that scenario you would need to buy a doe tag and hunt with a local
Iowa resident who has a buck tag (party hunt)...There are usually some locals interested in that scenario, you could exchange some hunting rights for it.
Just a possible set up that allows you to hunt your property every year and take a buck.
Jerred: You can hunt it every year if you want, you just have to shotgun hunt in the years you do not bow hunt...
With that scenario you would need to buy a doe tag and hunt with a local
Iowa resident who has a buck tag (party hunt)...There are usually some locals interested in that scenario, you could exchange some hunting rights for it.
Just a possible set up that allows you to hunt your property every year and take a buck.
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Hardwood11
It is going to be a good fall!
Iowa
Another FYI...I saw an ad for a similar farm 160 acres and they want high 400,000 for the farm. I think 80 acres in tillable. The ad said the cash rent is 300 per acre and will be going up to 350/acre.
Great return it said....the pictures show a farm that is fairly rough and may have been pasture. That being said, if corn prices drop to $4 a bushel which is very possible, as futures are showing $5 now, the rent on that farm could easily drop to $100-$150 an acre.
As a realtor here in MN, I hate to see misleading ads, so if you are projecting income long term, never count on $300 an acre rent, unless you are living in the prime farm belt of central or northern Iowa...these rates can change in the next 2-3 years.
Great return it said....the pictures show a farm that is fairly rough and may have been pasture. That being said, if corn prices drop to $4 a bushel which is very possible, as futures are showing $5 now, the rent on that farm could easily drop to $100-$150 an acre.
As a realtor here in MN, I hate to see misleading ads, so if you are projecting income long term, never count on $300 an acre rent, unless you are living in the prime farm belt of central or northern Iowa...these rates can change in the next 2-3 years.
chipterp
PMA Member
Hardwood is so rights. We're looking for more hunting ground to buy and I am damn tired of realtors figuring in all time high ground rent in price per acre on hunting farms. If we have a good year next year corn is going to be under $5 and a reality check will set in for a lot of people.
I hope when that happens, people quit pulling out CRP, but it may make it worse. Leasing ground is touchy, a lot of locals get kicked off of huge tracts of land by guys like Tails of the Hunt, Whitetail Fantasies, etc. Can't blame the farmers, but if we want to pass hunting on to the next generation, they need to experience hunting.
Crimson Arrows
Well-Known Member
I never assumed more than $100/acre income when I purchased my farms-even if I got more now or predicted it in the future. In fact, I never bought and "assumed" the land would ever appreciate (although it usually always does), but rather, worst case scenario.
Best to lean on the side of bad than good when purchasing IMO. If you can walk away with the no net loss, worst case scenario you enjoyed the land for a few years and learned more than any book or video could teach.
Best to lean on the side of bad than good when purchasing IMO. If you can walk away with the no net loss, worst case scenario you enjoyed the land for a few years and learned more than any book or video could teach.
Hardwood11
It is going to be a good fall!
$4 corn might make the CRP program enticing again. If we have a good crop this year, it is very likely corn will drop to $5 or possibly $4.
Do the math in your head... farmer pays $300 rent and then pays $500 an acre input costs. How many bushels per acre will be needed to make a profit??
Things could really change in the rural scene throughout the Midwest
Note we had the worst crop in the midwest due to the do the drought last year, yet there is still corn available at most retail stores to feed the birds/wildlife (no shortage)?
Do the math in your head... farmer pays $300 rent and then pays $500 an acre input costs. How many bushels per acre will be needed to make a profit??
Things could really change in the rural scene throughout the Midwest
Note we had the worst crop in the midwest due to the do the drought last year, yet there is still corn available at most retail stores to feed the birds/wildlife (no shortage)?
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letemgrow
PMA Member
Thats the way I look at it too. No way crops will stay at an all time high. It will go down so only plan on average year rents at best.
BJohnson
Well-Known Member
I am not wishing any downturn on the ag economy but the scenarios listed in the above posts are consistent with my feelings of what may very well happen in the next 2-3 years. When the USDA forecasts in April 2012 after "decent" spring rains (but not great) were still stating "record corn crop", local bankers I talked to were worried about $5 corn heading to $4 levels. We sold my parents farm in 2012 subsequent to my mother's passing for various reasons, some of which are the circumstances listed above. Time will tell if it was a wise or stupid decision but with 8 siblings involved, it made some sense in our particular situation.
$3/4 corn will make $15k/acre farmland worth $6k/acre farmland really fast, unless some guys have just been banking their profits the past couple of years hoping for such a thing to happen, aka another "the 80's". In a way I hope it does happen, then I can actually afford to buy some ground.. lol
JNRBRONC
Well-Known Member
Agreed. Of all places, $7 corn was an incentive for increased production in Africa (and many other parts of the world). So someone will get lucky with weather and increase supply.
It is not "the 80's" again, IMO. Most farmers buying ground are putting major cash down from the high grain prices and interest rates are very low. The 80's problem was caused by banks loaning with little money down, then interest rates went nuts on the variable interest loans, coupled with crashing grain prices.
I do think farm ground price will moderate, but I don't see a "crash".