The IOWA FARMLAND rush continues on...........

[Fishhead24]

Yes, I'm top heavy in prime Iowa farmland at this time.

[Fishhead24]

Just got lucky as [censored] with WALMART.......bought a chunk at 45.5 two weeks ago and sold on Monday at 51.15 for a very nice sizable gain.

One of the few individuals in America up a staggering amount gambling and down a chunk in the stock market. At least this score in Walmart score helped.

[Fishhead24]

There will be a new land survey out no later than SEPTEMBER 1ST of this year. Here were the results from the March 1st report.............



The value of good farmland in Iowa shot up 16 percent in the past year, with 7 percent, or nearly half the total increase, coming in the first quarter of this year, the Federal Reserve Bank of Chicago reports in a new quarterly survey of agriculture lenders.

The big gain is an indication of how strongly ethanol demand is driving agricultural investment, the Chicago Fed said in its May agricultural newsletter.

Corn prices, the bankers noted, were up an average of 63 percent to $3.31 a bushel during the first quarter, while farmers nationwide said they expect to plant 16 percent more acres to corn this year.

Farmers are trying to meet a growing demand for ethanol, the newsletter said. "Ethanol production will require 27 percent of the 2007-08 corn crop, an increase from 20 percent for 2006-07," it said.

Average soybean prices during the first quarter were up 18 percent, but soybean acreage is down 11 percent, the newsletter said.

"The surge in corn acres would result in the greatest acreage planted to corn since 1944," the Chicago Fed said.

The increase in Iowa farmland values was the largest of the Chicago Fed's survey of four states. Lenders in Indiana reported average farmland value increases of 10 percent for the 12 months ending April 1, while in Wisconsin the increase was 8 percent, and in Illinois it was 7 percent.

The average gain in farmland value for all four states was 10 percent.

The rapid increase in values is reflected in the fact that 5 percent, or half of the 12-month increase, came during the first three months of 2007.

Separately, a private survey of Iowa agricultural real estate agents in March found Iowa farmland prices had increased 13.6 percent in the past six months. That survey was by the Iowa Farm and Land Chapter No. 2 Realtors Land Institute.

[Fishhead24]

Farmland Prices Rising Rapidly
Farmland prices are rising rapidly around the United States. Prices are pushed by the rising value of farmland for raising corn and the increasing popularity, according to the Wall Street Journal (Julian Mincer, "Farmland Grows on Investors," Wednesday, May 9, 2007, B3A), of "ranch land". In Iowa the price of farm land has risen 20% to 30% in the last 16 months, or from $4400/acre to $5200/acre. Land has continued to increase in price, even after price pressure from urban sprawl has abated. (This rise in farmland value appears to be independent of rise in ranch lands in Idaho, Colorado, and Texas, where Californians are investing their home equities whose values have risen with the increase in that state's population.)

Such increases have occurred in the price of farmland in Greenbrier County, West Virginia, where our farmland is located. To our impression, in the past two years, farmland there has risen from $1500/acre to nearly $3000/acre.

The increasing prices have sparked the interest of equity investors. Investment in farmland is seen as a stable investment, providing nonvolatile returns of 3%-5% on crops alone, not including rise in land prices. Some equity investors are targeting environmentally or ecologically interesting land, that might draw the interest of environmental groups in purchasing the preservation rights. One investment firm is anticipating returns of 8%-10%/year, not as exciting as many investments, but stable and attractive.

[Belok]

So we should contact you to buy farmland in Iowa, right?

Seriously - whether or not this guy is legit, he obviously has a sales agenda.

[Fishhead24]

Please, I have no agenda whatsoever.

Have been suggesting individuals buy farmland for the past 5-10 years.

Look, the best things to invest in many times are those oppurtunities where the masses no little about. This is still the case here.

One of my great joys is attempting to help others financially anyway that I can, no matter how small.

All one has to do is take the time(very little) and do research on these subjects(farmland, ethanol, grains) to see the potential that is still here. Check my previous post in this thread, it lays out precisely the benefits of buying farmland at this time.

One can lock in a 4-7% return per year JUST BY RENTING OUT the land. Then take into consideration that this land will in all likihood appreciate at LEAST 10% a year for the next 2-3 years and one has a nice investment that provides diversification for a portfolio.

The objective of mine here is to allow my friends here on this forum to at least be aware of this potential.

[KaiB]

Noob here with 0 posts who couldn't help but note some of the drivel. Family farms ca. 3,000 acres in SW Iowa and has for 4 generations now.

Its a bit late to consider a play in IA Farmland...wiser men than I are saying this. Reasons are many, most of the posters here are bright enough to know this.

I would think that many opportunities exist for risk investment for those who can afford to expose 5% of their portfolio.

[Fishhead24]

Good to hear that so many "wiser" men are saying it is late. This is good news for the continued upward trend of quality Iowa farmland.

Again, think were good to go for the next 18-24 months in this market.

[laserboy]

Fishhead,

Farmland in Argentina and Brazil have greater yields than in the US and costs about 1/10 the price. These countries dominate the soybean, coffee, and sugar export markets and any other market they decide to enter. It's no surprise that their agricultural exports to emerging markets are booming (they maintain a huge trade surplus with China, the exact opposite of us). US farmers are quite frankly getting their butts kicked by the South Americans despite the fact that they get billions of dollars in handouts from the US government.

Which farmland do you think is the better place to invest in?

Let's be honest for one second here... The US farming industry is uncompetitive in the global marketplace and would go broke if not for handouts from the government. Did you know that our government actually pays US farmers billions of dollars in taxpayer money NOT to grow crops so as to artificially restrict supply and pump up prices?

This is just my opinion, but the US agricultural industry is a complete abomination and should be abolished. We should import our food from South America like the rest of the world. US farmers can go get jobs as Walmart greeters for all I care. The idea of investing in this "industry" is ludicrous to me.

[Fishhead24]

[ QUOTE ]
Fishhead,

Farmland in Argentina and Brazil have greater yields than in the US and costs about 1/10 the price. These countries dominate the soybean, coffee, and sugar export markets and any other market they decide to enter. It's no surprise that their agricultural exports to emerging markets are booming (they maintain a huge trade surplus with China, the exact opposite of us). US farmers are quite frankly getting their butts kicked by the South Americans despite the fact that they get billions of dollars in handouts from the US government.

Which farmland do you think is the better place to invest in?

Let's be honest for one second here... The US farming industry is uncompetitive in the global marketplace and would go broke if not for handouts from the government. Did you know that our government actually pays US farmers billions of dollars in taxpayer money NOT to grow crops so as to artificially restrict supply and pump up prices?

This is just my opinion, but the US agricultural industry is a complete abomination and should be abolished. We should import our food from South America like the rest of the world. US farmers can go get jobs as Walmart greeters for all I care. The idea of investing in this "industry" is ludicrous to me.

[/ QUOTE ]

Is your reasoning one of ethics or fear?

Would you have had the same reasoning 5-10 years ago?

In 1999, the average cost of land an acre of Iowa farmland was $1800 and eight years later it is above $5000......and going higher(in my opinion). And remember, this is land you are making 4-7% on cash renting every year to boot.

Personally, I've only recommended buying farmland for the past two years. Two years ago there were many, many skeptics also such as yourself and meanwhile in those two years, Iowa farmland has appreciated a minimum 30%. Now I fully understand past performance is no indication of future results, but there is still a tremendous upside to this market. Would I put all my eggs in this basket, of course not.

By the way, corn and soybeans are in a very bullish trend right now, with beans approaching $8.50 and corn $4.30 and these are the two main crops in Iowa.

Think about this for a minute also, the states of CALIFORNIA and FLORIDA have a grand total of only two service stations that deliver E-85(85% ethanol fuel) currently. Two years from now do you realize what this number is going to be? It will probably be in the thousands! Right now as we speak, my guess is less than 1% of the US population knows what E-10 or E-85 is.............this is about to dramatically change in the next 6-24 months.