New record set for land prices in Iowa

[Hopperbin]

OMG if it takes longer than a generation to purchase land then one must give their head a shake cause a rental agreement would be better. Also on the other hand if one sells land so as can retire when keeping it and renting out can produce the same results plus the next gens can do the same must also shake the head.

[Hopperbin]

I was fortunate one time I bought 5 quarters and two had mineral rites. At the lawyers office the seller threw in the mineral rites. The lawyer said nothing to my benefit. Those mineral rits some day will be worth more than the land purchase price. Rites, not Ritz

[mbratrud]

I agree Hopper the thought of multi genereations to pay for land sounds insane. Look at Ontario, Many Places in the US, Europe and elsewhere. You do not pay $20000, per acre and pay for it in a generation soley off the return from that land unless you get lucky. In Western Canada we have become accustomed to paying for land in 10 - 20 years or less, and my point is in many places in the World that does not happen.

[Hopperbin]

True and it should not happen. Stating that as a land owner of course.

[ado089]

Newguy, there is no comparison between residential and ag realestate, people aren't making a living off their house, they're getting in pissing matches with them.

As far as $6,000/ac land in high producing corn country.... 300bu/ac x $7/bu = $2,100/ac or just shy of 3X one year production. Now let's look at Kamsak, Sk...50bu/ac x $12/bu = $600/ac...3X would be $1,800/ac BUT, this is still Sask, you are guaranteed a frost every year, you pick, spring or fall, if you're lucky you get both. Averare precipitation is about 13" and I'm sure the standard deviation has to be close to 2", It's winter 8 months of the years and damn hot the other 4months. It's 600 miles to the mountains and 1200 to the ocean. It's also full of indians that will steal anything of value thats not tied down and some things that are. We only have one crop that resembles a consistent money maker (canola) and we only get one crop per year. Most of our soils are less than 4% O.M. meaning we pay for almost every last lb. of N. Our freight is 2X any other major crop growing region in the world. Unless your wife works for the government or is a tradesman there is still F-all for high end, well paying jobs in sask.

With all that said I would put our residential realestate overpriced nearly 2X and givin the environmental risks, limited crop options I would say our farmland is at best the right price but more likely about 30% overvalued.