Iowa farmland value up 21% for year ending September 1st!

[Fishhead24]

Taking into account that one can rent this land rather easily to a good farmer that will increase ones dividends by 4-9% on top of the land appreciation has made this a very wise investment over the past 12 months...............


Values Up Nearly 21% For The Year Across Iowa

Iowa cropland values jumped 7.1% for the six-month period ending September 1, according to the mid-year survey of land values conducted by the Iowa REALTORS® Land Institute and released today. According to Troy Louwagie, Hertz Real Estate Services, Mt. Vernon, Iowa, and chair of the survey committee, participants in the survey are specialists in farmland who are asked for their estimate of the average value of cropland as of September 1, 2007. The estimates are for bare, unimproved land.

The survey found a statewide average increase in cropland values of 7.1%. Couple that six-month boost with the 13.6% burst the preceeding six months yields an explosion of 20.7% in cropland values for the year ending September 1. All nine Iowa crop reporting districts showed an increase, Louwagie said, with gains ranging from 4.1% in southwest Iowa to 9.8% in northwest Iowa.

Factors contributing to the increase in farmland values include: Higher corn and soybean prices, demand created by expansion of ethanol and biodiesel plants, limited amount of land offered for sale, good crop yields and positive attitudes about agriculture. The survey found 1031 tax deferred exchanges are still a factor in the land market, but at not the level seen two to three years earlier, Louwagie said.

[CrushinFelt]

NVDA up 67.84% in the last year
INTC up 41.41% in the last year
MSFT up 26.18% in the last year
GOOG up 54.31% in the last year
AMZN up 127 % in the last year
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CROX up 98.69% in the last year


DUCY?
BBV is down the street

[DcifrThs]

[ QUOTE ]
Taking into account that one can rent this land rather easily to a good farmer that will increase ones dividends by 4-9% on top of the land appreciation has made this a very wise investment over the past 12 months...............


Values Up Nearly 21% For The Year Across Iowa

Iowa cropland values jumped 7.1% for the six-month period ending September 1, according to the mid-year survey of land values conducted by the Iowa REALTORS® Land Institute and released today. According to Troy Louwagie, Hertz Real Estate Services, Mt. Vernon, Iowa, and chair of the survey committee, participants in the survey are specialists in farmland who are asked for their estimate of the average value of cropland as of September 1, 2007. The estimates are for bare, unimproved land.

The survey found a statewide average increase in cropland values of 7.1%. Couple that six-month boost with the 13.6% burst the preceeding six months yields an explosion of 20.7% in cropland values for the year ending September 1. All nine Iowa crop reporting districts showed an increase, Louwagie said, with gains ranging from 4.1% in southwest Iowa to 9.8% in northwest Iowa.

Factors contributing to the increase in farmland values include: Higher corn and soyabean prices, demand created by expansion of ethanol and biodiesel plants, limited amount of land offered for sale, good crop yields and positive attitudes about agriculture. The survey found 1031 tax deferred exchanges are still a factor in the land market, but at not the level seen two to three years earlier, Louwagie said.

[/ QUOTE ]

FYP

[john voight]

yea but when you buy land, you buy it w/ borrowed money, where as w/ stocks you are usually tieing up all your money.

So IMO you cant just compare the annual return.

[Jimbo]

[ QUOTE ]
yea but when you buy land, you buy it w/ borrowed money, where as w/ stocks you are usually tieing up all your money.

So IMO you cant just compare the annual return.

[/ QUOTE ]

Ever heard of margin? Besides if I only made 21% this year I'd find a good 2nd hand Hari Kari knife. Also his farmland profit is on paper, mine is liquid and in the bank.
In case you are interested my portfolio is up 28% since July

Jimbo

[kimchi]

FH.....Since you seem to have stopped writing in CAPS.....and use ',' instead of '.....' then I'll give it a whirl.

Why not keep all of your farmland posts in the SAME THREAD...? I don't think we need a weekly update on IOWA FARMLAND....besides.....how about a GRAPH?

Any chance you could post some MORE DATA on farmland such as HISTORICAL DATA.....and something relating to its PRICE VOLATILITY? Your farmland investments seem to be UP WELL for the year.....but so have so many other TRADITIONAL INVESTMENTS. It would be interesting to see the RISK/REWARD ratio of IOWA FARMLAND.

.....THANKS

[john voight]

[ QUOTE ]
[ QUOTE ]
yea but when you buy land, you buy it w/ borrowed money, where as w/ stocks you are usually tieing up all your money.

So IMO you cant just compare the annual return.

[/ QUOTE ]

Ever heard of margin? Besides if I only made 21% this year I'd find a good 2nd hand Hari Kari knife. Also his farmland profit is on paper, mine is liquid and in the bank.
In case you are interested my portfolio is up 28% since July

Jimbo

[/ QUOTE ]

My portfolio is up 3% since Monday.
I win.

[john voight]

btw that was a joke I have 0$ invested right now so I cant really talk [censored].

I am aware of buying stocks on margin, but I have heard that this is a risky thing to do (prolly for the unintelligent). So I didnt really think of addressing it. If anyone could clear up how risky it really is, or has some good reads, I am all ears.

Guys, I am not saying 1 is better than the other. I am just saying they are totally different investments. Also, posisbly an overlooked factor would be turning the land into a possible asset by getting some cashflow out of rent/lease/business, etc...

I too, don't believe that land appreciation can out perform stocks over the average 30y time span. But I feel a lot can be done w/ land if you don't just sit on it.

[Jimbo]

Look at margin like buying a 4000 acre farm In Iowa with cash or an 8000 acre farm with 50% cash down and financing the rest on an interest only note that renews weekly and could require an additional cash infusion if your stock values decrease too much.

[ QUOTE ]
Guys, I am not saying 1 is better than the other. I am just saying they are totally different investments. Also, posisbly an overlooked factor would be turning the land into a possible asset by getting some cashflow out of rent/lease/business, etc...

[/ QUOTE ]

Dividends are to stocks that additional cashflow is to farmland.

Jimbo

[DcifrThs]

this is not even close to comparable. the power of real estate is in the #s. a 21% increase in land value can be a massive return.

lets say it is $5k/acre (made up #s) and you own 100 acres financed w/ 20% down.

you put up 100k + fees/closings etc. (not counting benefits from renting which would obv more than offset those costs)

if the price increases by 20% (to 600k), and you sell in short order, you haven't made 20%, you've made 100% return

Barron