If you put your money in the bank, inflation will steal it from you. If you put your money in the stock market and it crashes, for at least the short term, it's gone. If you buy land with your money, as long as you can pay the property taxes to keep the government from stealing it from you, you have a real investment that will be less volatile.

Keith

Look it up under agriculture subsidies. Then search by state, county, and by farmer's name. It is jaw dropping!!!!!!

There could be a lot of reasons, if it was in northwest Iowa usually it’s for manure rights so they can maintain there beef, dairy, and hog operations, in Johnson county my guess would be some type of development or an investor just needs some place to money.

might be wind turbines on the farm.
Similar one sold in northern Iowa a month ago in the 20,000s with turbines producing income.

We had the thread a week or so back on why the rich are buying farmland. I guess our memory or focus only last a few days. If a person worth 50 billion buys 500 million dollars worth of land at say 20K per acre he buys 25,000 acres of land which is 1% of his total net worth. One percent would be like a person earning a 100 K per year putting 1K in the market or even a junk bond.

We are now having some 3,000 cow dairies buy out the 700-1500 cow dairies near me. It took a while to get enough equity but that is what is taking place now.

Bryce

My bet is it was bought with cash. If everything is paid for, you don't have the desire to live like a millionaire, cash is sitting around, you buy land and don't care that you "paid too much".

I doubt cash was used. Large amounts of cash are assumed to be drug money and confiscated. No evidence, no warrant, just taken. Also the largest bills allowed to be in circulation now are 100 dollar bills. At 26,000 per acre it would take 260 bills per acre.

About 30 years ago I owed my dad 3000. I wanted to pay him back with 1000 dollar bills. I dont know when they were banned but 30 years ago you couldnt get any from a bank. Government hates anonymity.

Cash meaning there was no loan involved. Money in the bank and it is bought.

Thats called writing a check

Around here it is called "It was bought with cash, OR I/they bought it with cash." Whether it is car, house, land, etc.

When you write a check, especially a large check, the IRS is notified. If its a small check the NSA has a record of it as they record ALL electronic communication. When you use cash its a personal and private transaction. We can't have that. Have to make sure all your tax's are paid so government can give your money to someone who is entitled to it.

A while back I was reading an article about these kind of crazy prices for farmland. One guy explained that once you get to a certain size operation (I’m talking many thousands of acres) you can afford to pay crazy prices because in total the per acre cost of production of a bushel of whatever you’re growing isn’t affected that much if you are paying it out over several years, especially when a large part of your base farm is paid for.

It’s similar to what BBLWI was referring to about dairies in his area


Crazy but it makes sense to a degree especially if you HAVE to expand to keep your operation growing

in our area there is also investor money -- the corporate farm seem to have a limitless supply. Mostly cali money looking for ? return (all farmers are rich don't ya know)

That would be true if you think prices and yields are going to remain static.



Same here if one doesn't borrow money we call it paying "cash".

If I had to bet it was either a developer, an ole boy farmer or a rich dude with enough money to avoid financing, or maybe the best choice an investor doing a 1031 exchange legally avoiding taxes on another real estate deal and wanting to get money that is devaluing 5 percent a year out of the bank

Johnson County Iowa is in the Iowa City area of the state.. Alot of new development in that area, plus a "be kind to critters" type of town for many who reside there.

Didn't know you could do that. Our highest performer in my county has gotten paid $7 million in the last 25 years. Avg. of $280,000 per year