Interesting stats on who owns farmland in Iowa.

[lucas80]

Not linking, just telling you what was in my weekly edition of the Spokesman, the newspaper of the Farm Bureau.
58 percent of all land is leased.
84 percent of land is free of debt.
Cash rent is rising quickly versus shared producer/renter contracts. Probably an indication of the rising number of out of state owners, and folks like me who inherited land, and have no interest in even visiting the land I own minus going to grandma and grandpa's graves every once in awhile. 55 percent of land is now owned by someone who is not actively farming.
In 1982 29 percent of farmland was owned by people over the age of 65. That number is now 66 percent.
46 percent of all farmland in Iowa is owned by women, and the percentage increases by age bracket.
17 percent of owners do not have a designated successor. 75 percent of Iowa's land owners would be interested in selling their land to young farmers just starting out if they were guaranteed federal or state tax credits.
The numbers come from a survey done by ISU every 5 years, and this study is from 2022. Most of these numbers, such as the age of land owners, and female ownership, are up from the 2017 numbers.

 

[Hawk_82]

Bill Gates will help us. He knows what to do.

 

[Bank of Hawk]

Tax laws make it extremely favorable to hold onto farmland until death and also make it extremely unfavorable to sell while living. Thus the age of farmland owners is much higher than in 1982 and also contributes to increased leasing of that land because that 95 year old grandma farmland owner, isn’t getting on a tractor anytime soon.

 

[Derekd3408]

Female ownership isn't surprising at all.

 

[lucas80]

Female ownership isn't surprising at all.

Forget The Villages. Iowa is the place to retire to if you want to score an older, single gal sitting on a pile of money.

 

[win4jj]

Forget The Villages. Iowa is the place to retire to if you want to score an older, single gal sitting on a pile of money.

Pic?

 

[onlyTheObvious]

My parents own a little. They can’t sell it or they would get killed in taxes. When they pass us kids will sell it right away because of the no capital gains tax.

Makes no sense to keep it and keep passing it down and splitting it out to more kids/grandkids.

 

[pjhawk]

I sold half my interest in inherited farm land to a family member and I was absolutely shocked at how low the taxes were on the transaction. This is another area where generally already wealthy people get tax free windfalls.

 

[anon_b29nm7v7dwp6r]

I have run the numbers a bit on a few properties….and from a cash flow perspective…at current farm prices, it really isn’t all that attractive as an investment.

I’m not sure how ANY small farmers are getting their start with land prices the way they are. Unless you inherited it.

 

[abby97]

I sold half my interest in inherited farm land to a family member and I was absolutely shocked at how low the taxes were on the transaction. This is another area where generally already wealthy people get tax free windfalls.

Your interpretation of "how low the taxes were on the transaction" is useless. My guess is if you had to pay over half of your sales price in taxes, you would consider that "low". The left loves them some taxes........

 

[pjhawk]

Your interpretation of "how low the taxes were on the transaction" is useless. My guess is if you had to pay over half of your sales price in taxes, you would consider that "low". The left loves them some taxes........

The taxes paid were less than 2% of the value of the sale price. I was pretty incredulous.

 

[StormHawk42]

I sold half my interest in inherited farm land to a family member and I was absolutely shocked at how low the taxes were on the transaction. This is another area where generally already wealthy people get tax free windfalls.

Not to mention farm property taxes are excruciatingly low (which is why our residential property taxes are crazy high)

 

[Titanhawk2]

"58 percent of all land is leased." - that's because farmers retire and let other farmers farm their land as retirement income?

 

[onlyTheObvious]

"58 percent of all land is leased." - that's because farmers retire and let other farmers farm their land as retirement income?

And when they die the kids sell it.

Makes no sense to keep passing farmland down to your kids. At some point your 200 acres is divided out over so many people it’s pointless.

 

[ihhawk]

In the small town of Winfield there was an 80 and a 40 sold a few months ago. The 80 went for 17k/acre and the 40 went for 16k. There were 4 farmers that just increasing the price.

The farmer I worked for growing up is 70. He has been cash renting a 240 acre farm for 35 years. The old man died but his wife is still alive. He has the turn down option when it sells. It will be around 18k an acre. Why would anyone ever do that

 

[lucas80]

Your interpretation of "how low the taxes were on the transaction" is useless. My guess is if you had to pay over half of your sales price in taxes, you would consider that "low". The left loves them some taxes........

Who is paying half the sales price in taxes?

 

[fivecardstud14]

Your interpretation of "how low the taxes were on the transaction" is useless. My guess is if you had to pay over half of your sales price in taxes, you would consider that "low". The left loves them some taxes........

You're incapable of writing a post without saying "the left." You really are a one trick pony who knows nothing on any subject. If there's a topic being discussed, rest assured you don't know shit about said topic.

 

[DeangeloVickers]

Not linking, just telling you what was in my weekly edition of the Spokesman, the newspaper of the Farm Bureau.
58 percent of all land is leased.
84 percent of land is free of debt.
Cash rent is rising quickly versus shared producer/renter contracts. Probably an indication of the rising number of out of state owners, and folks like me who inherited land, and have no interest in even visiting the land I own minus going to grandma and grandpa's graves every once in awhile. 55 percent of land is now owned by someone who is not actively farming.
In 1982 29 percent of farmland was owned by people over the age of 65. That number is now 66 percent.
46 percent of all farmland in Iowa is owned by women, and the percentage increases by age bracket.
17 percent of owners do not have a designated successor. 75 percent of Iowa's land owners would be interested in selling their land to young farmers just starting out if they were guaranteed federal or state tax credits.
The numbers come from a survey done by ISU every 5 years, and this study is from 2022. Most of these numbers, such as the age of land owners, and female ownership, are up from the 2017 numbers.

Does it have deer or pheasants on it and do you like venison?

 

[DeangeloVickers]

In the small town of Winfield there was an 80 and a 40 sold a few months ago. The 80 went for 17k/acre and the 40 went for 16k. There were 4 farmers that just increasing the price.

The farmer I worked for growing up is 70. He has been cash renting a 240 acre farm for 35 years. The old man died but his wife is still alive. He has the turn down option when it sells. It will be around 18k an acre. Why would anyone ever do that

All tillable I assume? 17k an acre is insane. I'm hoping to buy a piece of rec ground here in the next 12-18 months for 5-6k an acre but that might be a long shot. The piece I want has zero tillable on it.

 

[ihhawk]

All tillable I assume? 17k an acre is insane. I'm hoping to buy a piece of rec ground here in the next 12-18 months for 5-6k an acre but that might be a long shot. The piece I want has zero tillable on it.

Tillable.

Timber ground around MT pleasant is going for 8k. Fuking stupid

 

[onlyTheObvious]

Is there a good website to search on farmland sales after they sold at auction?

 

[fan_4_life]

And when they die the kids sell it.

Makes no sense to keep passing farmland down to your kids. At some point your 200 acres is divided out over so many people it’s pointless.

I understand what you are saying. Mom and dad are gone so let's sell it and cash in. I get it, it's a windfall of money but as an heir to the land, what did you do to earn that land besides be born into the family? Sometimes it is more than just money. Think of the work your parents or grandparents put in to buy that ground and keep it in the family. I get frustrated dealing with this mentality of siblings wanting to sell. The generations before you held this land together for a reason and that should be honored in my opinion. There is no more land being made, this is all there will ever be and the acres of crop ground is shrinking each day. Just my 2 cents... family farm ground has destroyed friendships and families for years and that won't stop. I just hope that in these situations, there is an option for the current tenant of the land to purchase the ground in a fair manner. Keep all parties happy.

 

[ping72]

66% of all farmland in Iowa is owned by someone over the age of 65? Wow.

 

[SoDakHawk]

I understand what you are saying. Mom and dad are gone so let's sell it and cash in. I get it, it's a windfall of money but as an heir to the land, what did you do to earn that land besides be born into the family? Sometimes it is more than just money. Think of the work your parents or grandparents put in to buy that ground and keep it in the family. I get frustrated dealing with this mentality of siblings wanting to sell. The generations before you held this land together for a reason and that should be honored in my opinion. There is no more land being made, this is all there will ever be and the acres of crop ground is shrinking each day. Just my 2 cents... family farm ground has destroyed friendships and families for years and that won't stop. I just hope that in these situations, there is an option for the current tenant of the land to purchase the ground in a fair manner. Keep all parties happy.

Bingo. On my side, my mom's family farm has been in the family over 100 years. Actually, my grandpa did so well farming and acquiring land he was able to hand down 7 different farms to all his kids. Now those farms will be handed down to my generation from our parents and I'll end up with a third of my mom's farm. We haven't talked about it but instead of having it split up so much I wouldn't mind selling it to one of my cousins to keep it in the family. Could also just form an LLC with my brothers, drop the land in there, and rent it out to my uncle or one of my cousins. We're all pretty well off so it won't be all about the money.

My wife (no pics) family farm has been in the family for 125 years. Original settlers. Only one sibling farms and they are in Nebraska having established their own operation. Ideally, we want them to move back and take over the family farm and then hand it down to their kids. That's going to be a tougher situation to keep that farm being family occupied and operated, unless the FIL can hang on another 10 years until my nephew takes it over. He'll be a farmer, no doubt.

This farmland is more than just an asset, it's a piece of the family's history. You don't just discard what your great, great grandfather built when he got off the train, walked out into the countryside, marked off the land with boundary stones, and went and filed his claim at the land office. You owe it to past generations to pass down that land to the next generation in the family.

 

[fivecardstud14]

Bingo. On my side, my mom's family farm has been in the family over 100 years. Actually, my grandpa did so well farming and acquiring land he was able to hand down 7 different farms to all his kids. Now those farms will be handed down to my generation from our parents and I'll end up with a third of my mom's farm. We haven't talked about it but instead of having it split up so much I wouldn't mind selling it to one of my cousins to keep it in the family. Could also just form an LLC with my brothers, drop the land in there, and rent it out to my uncle or one of my cousins. We're all pretty well off so it won't be all about the money.

My wife (no pics) family farm has been in the family for 125 years. Original settlers. Only one sibling farms and they are in Nebraska having established their own operation. Ideally, we want them to move back and take over the family farm and then hand it down to their kids. That's going to be a tougher situation to keep that farm being family occupied and operated, unless the FIL can hang on another 10 years until my nephew takes it over. He'll be a farmer, no doubt.

This farmland is more than just an asset, it's a piece of the family's history. You don't just discard what your great, great grandfather built when he got off the train, walked out into the countryside, marked off the land with boundary stones, and went and filed his claim at the land office. You owe it to past generations to pass down that land to the next generation in the family.

On the other hand, time to move on.

 

[SoDakHawk]

On the other hand, time to move on.

Why? I still have relatives active in farming. Why would I not sell/rent to them? Selling out to a stranger at the highest bid is a good way to get my relatives to haunt me from the grave.

 

[fivecardstud14]

Why? I still have relatives active in farming. Why would I not sell/rent to them? Selling out to a stranger at the highest bid is a good way to get my relatives to haunt me from the grave.

True, that's a fair point and makes sense from that perspective. I guess I was just replying to your "It's a piece of family history, you don't just discard something your great grandfather blah blah blah" comment.

 

[onlyTheObvious]

I understand what you are saying. Mom and dad are gone so let's sell it and cash in. I get it, it's a windfall of money but as an heir to the land, what did you do to earn that land besides be born into the family? Sometimes it is more than just money. Think of the work your parents or grandparents put in to buy that ground and keep it in the family. I get frustrated dealing with this mentality of siblings wanting to sell. The generations before you held this land together for a reason and that should be honored in my opinion. There is no more land being made, this is all there will ever be and the acres of crop ground is shrinking each day. Just my 2 cents... family farm ground has destroyed friendships and families for years and that won't stop. I just hope that in these situations, there is an option for the current tenant of the land to purchase the ground in a fair manner. Keep all parties happy.

Don't plan on splitting up 150 acres between 7 grandkids across multiple families.

Parents know we will will sell. They said they would if it wasn’t for the tax hit. They currently rent to non family member.

This isn’t a situation where one sibling farms it and the other just wants his money.

My parents relatives have a history of living in 90’s. My guess is my wife and I won’t “enjoy” the money. More like hand it off.

 

[IowaPackFan]

My mom’s family did it right. They divided the farmland up between the siblings that farmed then the rest— home, savings, etc. were divided amongst those that did not. The latter’s share was substantially less from a monetary standpoint, but it was the right thing to do.
Too often farmland inheritance rips families apart when one wants to farm and the others don’t.

 

[Kinnick.At.Night]

"58 percent of all land is leased." - that's because farmers retire and let other farmers farm their land as retirement income?

Yessir. $$$$

 

[SSG T]

There are both tax benefits and "special payments" benefits if a farm is at least 50% owned by a woman. For example, the derecho payments that farmers received for USDA. The payments were based on insurance % and pay outs, but if a woman was listed as at least 50% owner, the farm received an additional 15% on their payment. I saw farms get an addition $50k because of that.

 

[onlyTheObvious]

My mom’s family did it right. They divided the farmland up between the siblings that farmed then the rest— home, savings, etc. were divided amongst those that did not. The latter’s share was substantially less from a monetary standpoint, but it was the right thing to do.
Too often farmland inheritance rips families apart when one wants to farm and the others don’t.

Proper thing would be to have every asset appraised and then divide evenly. What people do for a living IMO isn’t relevant.

The house and cash should equal the farmland and equipment value.

 

[SalAunese]

Tillable.

Timber ground around MT pleasant is going for 8k. Fuking stupid

Had a guy with a current loan come into the USDA office (NE Iowa) a few years back. Informed us at the FSA that he’d agreed to buy 80+ acres of timber ground. He paid off the existing farmland note and new ground with the sale of timber within two years of purchase. That was just 1/4 of the timber harvested and the rest went into a land stewardship program.

 

[cjr1310]

Why? I still have relatives active in farming. Why would I not sell/rent to them? Selling out to a stranger at the highest bid is a good way to get my relatives to haunt me from the grave.

That makes some sense if there are still family members actively farming, as long as the sale price is in line with market value.

Many people who had 150-300 acre farms that are currently being cash rented don’t have a future generation farming and that’s not enough land for someone to start doing so from scratch. It’s hard to fault someone inheriting a 200 acre farm for preferring to take 1/5 of a farm and walk with around 400-600k than get 8-12k a year in cash rent, especially if they are not in well off now.

 

[IowaPackFan]

Proper thing would be to have every asset appraised and then divide evenly. What people do for a living IMO isn’t relevant.

The house and cash should equal the farmland and equipment value.

Agree to disagree. In this instance, the farmland exceeded the value of the other assets, but farming was some of her siblings livelihood. If they split everything up “evenly” than those that farmed would have lost a considerable amount of land they’d been farming with gramps for decades.
I understand some people think everything needs to be equal, but equal isn’t always fair or right.

 

[fan_4_life]

Agree to disagree. In this instance, the farmland exceeded the value of the other assets, but farming was some of her siblings livelihood. If they split everything up “evenly” than those that farmed would have lost a considerable amount of land they’d been farming with gramps for decades.
I understand some people think everything needs to be equal, but equal isn’t always fair or right.

Sweat equity should factor in to these decisions. The people putting in the time and doing the work should not be getting the same slice of the pie as those not involved in the operation.

 

[denmar81]

How can someone make much, if any, profit on farming land purchased at 17 grand an acre?

 

[lucas80]

How can someone make much, if any, profit on farming land purchased at 17 grand an acre?

That’s the high end in some areas. $17,000 an acre gets headlines, but isn’t the norm.

 

[lucas80]

Bingo. On my side, my mom's family farm has been in the family over 100 years. Actually, my grandpa did so well farming and acquiring land he was able to hand down 7 different farms to all his kids. Now those farms will be handed down to my generation from our parents and I'll end up with a third of my mom's farm. We haven't talked about it but instead of having it split up so much I wouldn't mind selling it to one of my cousins to keep it in the family. Could also just form an LLC with my brothers, drop the land in there, and rent it out to my uncle or one of my cousins. We're all pretty well off so it won't be all about the money.

My wife (no pics) family farm has been in the family for 125 years. Original settlers. Only one sibling farms and they are in Nebraska having established their own operation. Ideally, we want them to move back and take over the family farm and then hand it down to their kids. That's going to be a tougher situation to keep that farm being family occupied and operated, unless the FIL can hang on another 10 years until my nephew takes it over. He'll be a farmer, no doubt.

This farmland is more than just an asset, it's a piece of the family's history. You don't just discard what your great, great grandfather built when he got off the train, walked out into the countryside, marked off the land with boundary stones, and went and filed his claim at the land office. You owe it to past generations to pass down that land to the next generation in the family.

I can respect that. I’ll fondly think of grandma and grandpa after I sell off my parcel and blow that money. They would have wanted me to splurge a little.

 

[Kinnick.At.Night]

Bingo. On my side, my mom's family farm has been in the family over 100 years. Actually, my grandpa did so well farming and acquiring land he was able to hand down 7 different farms to all his kids. Now those farms will be handed down to my generation from our parents and I'll end up with a third of my mom's farm. We haven't talked about it but instead of having it split up so much I wouldn't mind selling it to one of my cousins to keep it in the family. Could also just form an LLC with my brothers, drop the land in there, and rent it out to my uncle or one of my cousins. We're all pretty well off so it won't be all about the money.

My wife (no pics) family farm has been in the family for 125 years. Original settlers. Only one sibling farms and they are in Nebraska having established their own operation. Ideally, we want them to move back and take over the family farm and then hand it down to their kids. That's going to be a tougher situation to keep that farm being family occupied and operated, unless the FIL can hang on another 10 years until my nephew takes it over. He'll be a farmer, no doubt.

This farmland is more than just an asset, it's a piece of the family's history. You don't just discard what your great, great grandfather built when he got off the train, walked out into the countryside, marked off the land with boundary stones, and went and filed his claim at the land office. You owe it to past generations to pass down that land to the next generation in the family.

Great post. The story of the farmland in my family is similar to yours. Hardworking ancestors that were successful and owned multiple farms. When I inherit my share of the acreage, I plan on renting it out each season.