How to Buy Farmland in TODAYS MARKET
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- Опубликовано: 14 авг 2024
- In this video, Broker and Auctioneer explain who buys farmland, and how they are swinging it in the crazy land market we are experiencing today. He also talks about the stability of land as an investment.
#investment #financing #farmland
So all the farmers become farm hands. Wow
..win the lottery
How would you pay for it? Not everyone has 800.000 laying around.
I’ll have to start small and work up!!
Great video
The price of farmland has risen by huge amounts and now the price of farm products are dropping. Price of wheat just since harvest in June has dropped by over 3 dollars per bushel. Land prices went up huge back in the late 70's into early 80's, then dropped by 3/4 by the late 80's. All farmers had a hard time staying in business, and many lost the high priced land they bought on credit and more.
Can you recommend an investor for a homestead land in rural Kentucky?
i need to buy land that is tillable within reasonable price
Maybe you should encourage the farmers to buy the land!?! I feel that you as a company shouldn't be so aggressive trying to find outside investors when you know the local farmers would love to farm it.. just fyi
I own farmland in Rod Kentucky. The property was vacant before I purchase it for a year and a half and nobody bought it. Nobody wants to pay anything for any any land around here because it’s always handed down through inheritance. It forces sellers to look outside of the local community and outside of the state. If you’ve got a local farmers by my property send them my way. But I guarantee they never wanna pay what the asking price is. I want everything on the cheap cheap low low.
The broker is 'aggressive' to sell to *anyone*. Plus, before going on commercial market, it's typical for farm owner to check with neighbor farmers.
Good video but interesting that you didn't mention/talk about crowdfunding platforms or F-REITS.
Are $400/ac and $10,000 per acre realistic rental and sale prices in IA now?
Depending on where the farm is; yes there are multiple markets where is this possible.
They’re about middle of the road, southern Iowa you can buy 5-6k an acre, northwest Iowa you could get north of 20k
@@jacobnelson870 but what are realistic rental rates for both of those areas?
@@tjruff17 it seems these days the rent hovers around whatever make would make 2-2.5%roi
@@jacobnelson870 makes sense. And as rents go up, I’d expect sales prices to increase to roughly keep that roi similar.
So it’s only a 3.8% return if everything goes right. I guess you have to hope for some serious appreciation for the investment to make sense.
The cited 3.8% seems a bit high; more likely closer to 3%. It is also a gross metric, and doesn't include other costs such as land tax, and insurance, nor some smallish income (hunt lease, occasional select timber from draws/hills). Notable on the insurance is crop insurance.....this protects somewhat against a bad crop year, but at a premium as yearly cost.
I’m curious what the minimum acreage someone would rent is, if I have 15 acres is that even worth someone’s time
Typically someone will be willing to rent the acreage but not at the same rates that were mentioned in the video. Likely it will be a small or new farmer that wants to add to their small acreage
Good question. My answer would be min of about 80ac, UNLESS either: 1) truck farm (like commercial gardening), or 2) near another farm, or 3) high fertility or value crop (e.g. IA, IL soil or black walnut on trees). It's for similar reason to ~40ac being a rough practical min for tree farm. That reason relates to the operator/farmer/logger cost for staging and move of material/materiel to/from the land.
Why do the renters doesn't buy the land ?
Wouldnt they save money ar rhe long run ?
Interested video.
I wish I could buy a farm
If ur starting off from scratch the best option is renting. Most businesses don't survive past 5 years. Once u know ur stable enough then purchase the land.
Do you know that you mustn't own or have a farm land to benefit from agricultural investment? Agro farms investment gives users the opportunity to invest in their farms and receive daily ROI
My Dream. Will…..
Thanks.
Based on the 1% Rule in Real Estate investing, you need $96K gross rental income on this $800K farm. $31K is low ROI.
Agreed. If you're looking for 1% (monthly) gross ROI, then farmland likely isn't for you. Some will cite 'appreciation' but it may be best to look at decades-appreciation as only paired to match longterm inflation. So, average crop farmland gross ROI of ~3% may not compare well to your 12% (1%/mo x 12mo).
I want to buy farm land in USA
You know you mustn't own a farm land to benefit from agricultural investment. Agro farms investment let's you invest in farms and get daily ROI without doing the farm work.
Hard to tell if the represent the seller or buyers………. first I’ve ever heard to “tile the water away”
Soon will be my turn. The monster is coming for you
feeD the sOIL first, this monoculture is killing iT
Old McDonald had a farm, and had a little of everything. Made sense for subsistence, but operative word is 'had' for commercial now. There are now few such as it is not now economical, and thus generally not sustainable for a full time family income. Hobby farmers dabble, and young truck farmers burn out. So, in essence, most PC-'sustainable' farms turn out to NOT be sustainable (by the test of time). As for monoculture, if 1 farmer scales efficiency by farming one/mono-crop, then the near farmer can farm another type crop in a one/mono manner. Each can be efficient by focusing on 1 crop, and the market need for various crops can be met. And yet, if you don't believe, then put on the coveralls or invest by your view.
He lost me at the $800k