Buying Farmground

The wife and I have been on a mission the past couple of months trying to find a little farm to "play" on and use as our old age retirement home.

We've been out running the wheels off the car in three states trying to find just the right chunk of dirt.

This is turning into work!

We're finding that the good ones just aren't for sale and if ya do happen run across a decent lay out, the neighbors of that particular piece of ground will "one-up" ya every time when you get right down to the actual negotiations.

Boy, I'll tell ya, those big boys are really some heavy hitters when it comes to buying land!

Actual property value just does not enter into the equation at all and a guy has to do some really fancy footwork to keep the transaction kind of "quiet" until it is all settled. :>)

We think we have finally found just the right farm, but now we are sweating out the "behind the scenes" dickering that no doubt is going on in that particular neighborhood. :>)

I wasn’t this nervous when my kids were being born,

Allan

Hmmmmm , depends on the farm, and granted, there are some fine units up there.

But,I just let one go, which was located just a little south of you for half that amount. I'm not really looking at total money, I'm looking at what the farm will produce.

For instance, the farm I'm talking about was half gravel, has a tough time growing and maintaining grass and at best, will only push 20 bushel of wheat on a good year, so it's $500 admission price was way too steep to my mind.

Thanks for the hollar,

Allan

I've read your reply about four times now and just can't understand the jest of it.

Why not? Could you expound a little?

Thanks,

Allan

As a RE/MAX Real Estate agent I can tell you that currently there are very few investments that have a better return than property. Land values here in south central MI have sky rocketed. A 5 acre parcel will sell for 60k+. There are almost no plots larger than 40 acres for sale any more. However If you are interested in moving to MI I know of a farm forclosur that involves about 250 acres and house that should sell for 250k-350k depending upon the bank.

The last 40 acres I bought, I could have made a $2850 per acre profit on in less than 90 days but I suspect that would have been a drop in the bucket compared to what profit I can make in say 40 years.

I feel for you. Not long ago farmland here sold for $500/acre tops. Then the yuppies started moving in. They bid the land here up here so high none of the locals can afford to buy more.

Good luck.

Ron

Well, I really don't know how to look at this 'cause I guess to their minds, I am the outsider. But darnit, I wanna farm too. :>)

But, the big hitters I'm running into are the local neighboring farmers; these are some huge operators out here and they have the resources to back 'em up. They can afford to overbid if the parcel ties in nicely with their present operation.

Maybe if I was looking for a smaller sized outfit, I wouldn't be having this trouble. But seems to me, that I've gotta have at least a quarter or half section to even "try" to make it fly.

Same here, can't even buy grass for less than $500 a pop anymore. Used to be, you could by all the grass you wanted for $175.

Times change, I guess

Allan

Thanks,

Allan