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1981 land prices

all4s

all4s

Life Member
Just herd land prices rose 13.9% this past year. Iowa is now at back to it's 1981 bubble price and expected to continue to rise. Among the many reasons given, favorable interest rates was the biggest factor. No mention of hunting in the equation. I think they left something out!

Hunt on all4s
 
I heard the increased farmland value news on the radio this morning, not a shocker if you follow land prices at all. They did give a reference to outside investors buying land too, but did not specifically mention hunters.

IMO there are at least two entirely different markets out there, each with a different set of buyers. Real productive farmland is also trading very high and I doubt it is hunters that are lining up to buy that ground. Less productive farmland, but good hunting land, is also trading quite high given long term averages, but is still well below the value of good dirt for crops.
 
There are bubbles and such but drastic differences in land values today and what was going on in 1981. Just look at interest rates as a main factor. Land trades are also contributing- burbs are moving into farms- distance considered "commuting range" has increased so the guy getting residential development dollars for his land is able to bid much more than before for the better ground. He's just putting it back into ground and avoiding the tax right now. I'll be interested to see what happens when CRP isn't there to help offset the rougher ground- right now you can still find CRP payments that yield better than most bank CDs without even considering the land appreciation potential. Without having to worry about re-election the administrations budget support is drying up for farm programs, I think this is going to make a big difference in lower quality land prices. There is always going to be a cycle though- its just that the top and bottom of each is moving higher over time.
 
Very good points pharmer, I agree with the farm programs and definately the high and low cycle. I think right now we are on top of the cycle with intrest rates and available programs.
 
I overheard Barry Wensel at the classic tell a gentleman at his booth that his friend from chicago has 7,000 acres next to him and hasn't been able to hunt it for 3 years. I assume he means he hasn't drawn an any sex bow tag for 3 years. It is the ground that the enormous non-typical sheds at their booth came from. Anyway, A lot of reasons that land prices are up and I don't think we have seen the top of the cycle yet. Lots of big money out there. I think this market is going to run for a while. With that said, I bought TRCD at $9.00 per share and I dare anyone to find it on the NASDAQ. Done vanished! Take my opinion with a grain.
 
Ok so you lost your a$$ on Tricord Systems last close 8/5/02 @ $0.10

I guess I don't get the correlation with 1981 land values? But, my head still hurts from the weekend..., go figure!

Hunt on all4s
 
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