from Drudge; The Hot New Commodity: Soil

[boarderbloke]

http://www.reuters.com/article/2011/11/21/us-farmland-idUSTRE7AK0EA20111121

$1.2 million USD for 153 acres of Iowa ground.

[furrowtickler]

Out of control - any time in history when things get out of hand reality will kick in. Take a time out and grab a beer, SHTF shortly.

[boarderbloke]

I think this might be an example of investers turning to commodities that have intrinsic value, this may be an early sign of the inflation to come in those items(ie. gold, silver, farm land, mineral mines, fertilizer mines).

[furrowtickler]

That is very true, but anything that goes as sharply as land has will have a correction at some point. In some cases land has trippled in value here in the past 4-5 years, just too far too fast IMO.

[checking]

$7843.00 an acre. I don't think that is out of control. Actually cheap frontage for anyone wanting to build a country home with a view.

Risky is sinking $50,000 an acre into SE Sask. land looking for an oil zone to break even.

[highwayman]

Was there not a report of an Ag land sale at 16,000 /acre in the Midwest just recently. Cant remember where I read that but I would agree with furrow that this market is getting way overvalued and unaffordable IMO. Even our area of the southwest which I viewed as the final frontier as far as realistic values has gone crazy. Bought a 67000 assessed 1//4 in the spring for 550/acre , 8 months later land is trading at 1000 /acre for lesser quality. Whats changed? Dryness and downtrend markets paint a much riskier picture going forward than a year ago in this area and I'm the optimist. Was told by Lane realty 23000 acres south of Regina just closed at a sale average price of 1800/acre.

[Hopperbin]

Possibly from Hopperbin's posted topic not far down Nov. 16

Last month, buyers of an 80 acre farm outside Des Moines paid $16,200 an acre for the row crop and pasture land, a staggering amount that surprised veteran land agent and auctioneer Jeffrey Obrecht of Farmers National Co in Iowa.

[Burbert]

Its the rosy future that you duds have
been pointin to, thats raised the price of
farmland!!!!!! Goof balls kin make a
difference..........