I remember just a few years ago when farmground was selling for $3000/acre and people thought that was outrageous. Would have been a great investment.
Gonna take some 500bpa corn to make that pay off.
I know a guy from West Ky. that farms about 20,000 acres here that went over into Missourri and rented 6000 acres of marginal ground that has irrigation. Not sure of the price. I'm guessing there was a reason they didn't rent to a local.
I don't know if this is the main factor at work in this case, but there is a definite speculative buying trend in farmland going on all over the world. It has been kind of a slow starting, silent bubble. It is predicated on a future period of scarcity brought about by global climate change, modernization of developing nations and other things.
Is this an "ammo up" moment? 😉
Stephen
Good call Stephen! It is definitely a bubble and we will be bailing out farmers big time in the not too distant future. My moto: grow your own or buy local!
The same phenomenon is happening here in rural PA...not because of farming, because of natural gas. You could buy 100 acres for $250,000 10 years ago...now it's over a million...if you can even get it.
Old investors saying: "Land: They're not making any more of it."
It hasn't hit 12k an acre in this area, but its getting very close. Lots of ground selling for over 10k an acre and some for over 11k.
