Want 13% Appreciation on a Second Home? Buy a Farm in Iowa!
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Could farmland be the next real estate bubble? Want to get a second home that is not only in the country, it IS the country? Like The Bridges of Madison County country? Buy a farm in Iowa. No kidding: Iowa farmland rose in value by 13 percent in the year ending Oct. 1, according to a report in the DesMoinesRegister. Why? Because the value of the commodities on the land shot up — if the stuff you are growing is making more money, then the land you are growing it on becomes more valuable.
Stimulated by rising commodities prices, Iowa farm values rose by 6 percent in the period from July to October. That’s because corn prices shot up from $3.50 to more than $5 per bushel, and soybeans climbed from $9 to $13 per bushel.
Last September, the Iowa Realtor s Land Institute said values of Iowa farms had risen 8.5 percent from the previous September to a statewide average of $4,518 per acre.
I love the beach, I love San Diego, I love Alys Beach, but I could totally dig a farm in Iowa for double digits.
The president of the Federal Reserve Bank of Chicago said: “I see the value of farmland (going up) and people looking to deploy lots of liquidity, looking for opportunities. I see that prices are rising above what the productive capacity of that land can support.”
So here’s a nice 217 acres with a very new ranch house, only $675,000. Comes with rolling topography, workshop and livestock.
<a href="http://www.agphd.com/"><b>Brian Hefty</b></a> tells us cropland values are at an all-time historical peak of the sort that precedes a collapse. For the investor desperately seeking to park his money under some ROI mattress, any ROI mattress, cropland probably represents the reverse tossup to gold. Why not just put in a nice truck garden next to the cement pond instead.
<a href="http://www.agphd.com/"><b>Brian Hefty</b></a> tells us cropland values are at an all-time historical peak of the sort that precedes a collapse. For the investor desperately seeking to park his money under some ROI mattress, any ROI mattress, cropland probably represents the reverse tossup to gold. Why not just put in a nice truck garden next to the cement pond instead.
Kind of like Florida in 2005/2006?
Kind of like Florida in 2005/2006?
In hindsight, it sounds like it.
It also appears that while I was vicariously snapping up my last 100 acres of prime soybean ground I left more than one space before href in the link above, making more work for everyone who would try to follow it.
In hindsight, it sounds like it.
It also appears that while I was vicariously snapping up my last 100 acres of prime soybean ground I left more than one space before href in the link above, making more work for everyone who would try to follow it.
Not a problem. Appreciate the correction!
Not a problem. Appreciate the correction!
And I still want to play Meryl Streep!
And I still want to play Meryl Streep!
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