Plymouth County farmland sells for record $26,250 per acre

rivalhawks

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And if they aren't paying bonus's on a year like last year (this year has been rough, drought wise up there), they'll likely lose some of that ground. We have a very, very reasonable base rent across all our acres, and we paid a very, very handsome per acre bonus to each land lord. That helps keep the base rate set where it is, because they know we'll share in the good years, and not jack our rent in the bad years.

Exactly how it should work for both parties imo if there is trust. We were on a 4 year flex lease from 18-21 with some bad tenants who lied about yields every year but prices were so bad 18-20 it wasn't a huge deal. So we hired a crop adjuster to take yield samples on all the fields last year to keep them honest (we let them know we hired the adjuster) and shockingly they got the best yields they ever got in the 12 years they farmed our ground! We got rid of them and have a much better tenant now.
 
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KFSuperStar

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26k an acre? That’s nuts!

I get they’re not making more but farm ground doesn’t seem like a good investment at these prices….not to mention how an aspiring farmer could even get into the game.
There’s a guy in this area that has been buying ground the last year probably averaging 20,000 an acre. He sold his business and his goal is 2000 acres. I made the same comment about low ROI. It was pointed out to me at 400 rent he gets a 2% return with low risk and inheritance tax advantages for his kin. Beats the hell out of the stock market this year.
 

cigaretteman

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26k an acre? That’s nuts!

I get they’re not making more but farm ground doesn’t seem like a good investment at these prices….not to mention how an aspiring farmer could even get into the game.
It's darn near impossible unless you inherit or work for years for someone with no heirs.
 
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cigaretteman

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that’s always the case. Eventually it won’t be. What is now northeast Philly was originally farmland that was way too out in the country.

same with the Bronx.

it’s just a good read even if not relevant to this.
I'm sure it is, but no town in NW Iowa will ever be a Philly or NYC.
 

MitchLL

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Dec 26, 2018
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26k an acre? That’s nuts!

I get they’re not making more but farm ground doesn’t seem like a good investment at these prices….not to mention how an aspiring farmer could even get into the game.
Nothing will change until farmland is taxed differently than it is now.

And the bigger the farm, the bigger the subsidy.
 
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ConvenientParking

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These no longer exist...
Instead, we have a hundred million aspiring independently wealthy hobby farm owners. In the future, everyone will get their burial plot at birth and they will be allowed to farm it until they die.