Just read about some high dollar farm land sale in Ill

1936 · Apr 23, 2011

Sullivan sold two small farm near Adrican, Il in Hancock county - Dr. Martins 83.4 acres for 11,500 per acre - another 84.9 near by went for 10,500 per acre.

Close to Billion on the farm country, was this adjoining farms and bidding wars?

Sullivan did good at 7 % on 1.8 Million sales.

NY 986 · Apr 23, 2011

A similar "over-norm" bid happened in this area but I am not disclosing the price. It is for the purchaser all about the overall purchase price versus cash on hand, government payments for the year, what the lender will give based on the credit-worthiness of the borrower in general versus the value of the property in question, and the attitude that " I don't want any one else but me to have it" plus the widow or son is too smart to take my "I want to steal it legally" offer.
It's getting to the point where unless you have huge financial muscles you are not going to be able to buy anything. I understand what is fair is fair but this again casts great doubt on my future in this business.

gene bender · Apr 23, 2011

Lots of farmland auctions are sold for a flat fee by the Auctioeer the realestate agents arent happy. Its the sellers option just what he is willing to give for a commission.

Anonymous-0 · Apr 23, 2011

West Central Illinois land goes for big bucks when sold for deer hunting. Gramps dairy farm sold for $50,000 when he retired. Last time it was for sale it brought $280,000 with very little tillage on it. Don't know the conditions of the Hancock County land but suspect the 80 acres was prime hunting ground.

Flurette Farm · Apr 23, 2011

Most auctions get 4%...

rrlund · Apr 23, 2011

The place that joins me on the south side has been for sale for a year now. 77 acres. It was listed for $189,900 last year. A realtor called me the other day and said it had been relisted for $169,900. I told him it was worth $30,000 thirty years ago and to me,that's all it was worth now. Told him to call me back when they were ready to let it go for that.

GordoSD · Apr 23, 2011

A bargain at $170,000. You could sell it in 7 years for $300,000. Of couse OB's programs would be taking 60% of that $130,000 profit.

rrlund · Apr 23, 2011

You forgot the interest that I'd have to pay on it for 7 years. There's no way on Gods green earth to make that place pay at any more than the $30,000 I offered for it. Even at that,it's pretty sketchy.

NY 986 · Apr 23, 2011

I would understand if you did not want to say but could you describe what that 77 acres consists of? How much good tillable (row crop) ground comprises that 77 acres?

rrlund · Apr 23, 2011

There's something in the neighborhood of 50 or so tillable. Awful sandy,the non tillable is mostly swamp with a lot of brush and small trees. No fences,and that's all I'd want it for is pasture,so it would all have to be fenced. The old house was lived in up til the old gal passed away in December,but I'd hate to put any money in to it to make it livable from here on out. The old barn,or what's left of it is straight,but the bulk of it was torn down and they just put on a small lean to big enough for a couple of tractors where the old cow stable was.

NY 986 · Apr 23, 2011

It bothers me that somebody would pay that much for that acreage. I think the run up in land prices is a bubble that will burst at some point. I think the investment money is being thrown at land because the returns on stocks and other investments are not as attractive FOR THE MOMENT. What's the fallout going to be when the "investment herd" decides they want to pull their money out and go to the next great opportunity.
Worse yet I would hate to see a return to feudalism (in a modern form) where you would have ultra-wealthy land owners and those that would till the ground for profit (?) be nothing more than peasants. I am not trying to sound like a pinko commie but I just don't like where this is heading as I would hopefully be on this earth for another 30 or 40 years.

Tony in Mass. · Apr 23, 2011

don't let it bother you, just don't get caught up in the fear... well, in the real world, that is already gone. 986, You asked about my mom's area, I sold the place in '07, I had a hunch the market was going to crash, so I took a reasonable offer. Now, many years earlier city slickers bought land across the road for 'investment' or hunting yeah, 2 weeks a year. So a few weeks ago there was a county tax sale. the fellow that bought our place went to the auction- let's say the city slickers bought the neighbor's land for $150 an acre in 1971. This guy and his buddy bought the same land, 3 parcels, for taxes owed, new tax, transfer fees.... came to ...$135 an acre. Now tell me- what the @#$% kinda long term investment was that? When I went west years ago people in Cal and southwest wanted 4-5 gees an acre- or more. Last year I saw the same places for $4-500 an acre. But now the water table is 4 or 500 feet lower, so I drove away once again. Like RR, give them a standing offer and a phone number... someday you will get a ring...

Anonymous-0 · Apr 23, 2011

I would guess it was all or mostly tillible ground. You can't buy good farm ground here in Fulton County for any less that 6500-7000 an acre anymore. At least where we are.

GordoSD · Apr 23, 2011

I'm assuming crops would make the payments and the taxes.160 bu corn @ 7.50.

rrlund · Apr 23, 2011

Drop the 1 from that 160. Seriously,the best use for that place is pasture. Even then,don't count on it in dry weather. The guy who lived there all my life found the best use for it back before he put it in CRP. He grew wheat. It was headed out in the spring before the dry weather would set in,so he could get a crop with that.

billonthefarm · Apr 23, 2011

There have been several tracts of nice farmground near us, fifty miles or so, go for over 10k per acre. Like travis says you cant buy much for 7k any more. I would venture Sullivans got MUCH less than 7% but they are the best auction company I have ever seen, period.
bill

jd b puller · Apr 23, 2011

That'd be nice. There's a 23 acre tract of farmland 10 miles from the nearest town out by me. For a mere $2million you could own it.

Worst part about living here.

Spook · Apr 23, 2011

A lot of folks don't understand that the glaciers left Michigan with a lot of variety in soil types. I am on a esker, a ridge of sand and rocks. I have a couple inches of soil, then yellow sand, then white sand. I can't grow crap without adding compost. And it dries out to dust. Mowing the grass can be nasty, it gets real dusty. I sometimes go weeks without mowing, if it doesn't rain, it don't grow.

About a mile south of me, the ground in flat, with some clay. They get 160+ on that ground. The reason my ground isn't part of a farm, is that it isn't worth farming.

JDseller · Apr 23, 2011

Bought half of a 160 acre farm five years ago for $2900/acre. The eighty I got was 100% tillable. The other half was across the road and was only about 50% tillable. That half just sold last month for $6400/acre. The really sad thing is that a farmer bought it. He was bidding against me five years ago. He complained that I was going way too high then. So what is different today???

David G · Apr 23, 2011

Two places on either side of me just sold. The first one is really hilly with 30 acres of timber, went for $9500. The new owners cleared all the timber. The same people bought a flat 40 for $10,100 per acre.

I still think they are nuts.

toolz · Apr 23, 2011

I heard on the radio about a month ago that 36 acres of farm land near Decatur sold for $420,000.

Traditional Farmer · Apr 24, 2011

High commodity prices bankrupt far more farmers than low prices.Buy land and machines depending on high prices and then when they fall as they always do can't make the payments.

Just read about some high dollar farm land sale in Ill

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