# It's Not Your Fathers Farmland Market



## Vol (Jul 5, 2009)

From DTN.....unlike other Ag correction periods, Farmland is basically holding it's own in many areas.

Regards, Mike

https://www.dtnpf.com/agriculture/web/ag/news/article/2016/10/27/fathers-farmland-market


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## swmnhay (Jun 13, 2008)

I'd say land is down 20% off the highs here.

If interest rates go up any land will fall more.

Interest @ 4% on 10,000 land is $400 per acre.At 8% is $800 per acre.In the 80's it jumped to 15-20%


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## Vol (Jul 5, 2009)

swmnhay said:


> Interest @ 4% on 10,000 land is $400 per acre.At 8% is $800 per acre.In the 80's it jumped to 15-20%


Yes it did....and surely there won't be the number of knucklehead farmers and bankers that will take the plunge if interest rates climb into double digits. I am sure there are some who cannot take lessons from recent history but I would think that most will.

Banking regulations are so much different now than in the 80's....that should remedy many.

Regards, Mike


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## swmnhay (Jun 13, 2008)

Vol said:


> Yes it did....and surely there won't be the number of knucklehead farmers and bankers that will take the plunge if interest rates climb into double digits. I am sure there are some who cannot take lessons from recent history but I would think that most will.
> 
> Banking regulations are so much different now than in the 80's....that should remedy many.
> 
> Regards, Mike


My local bank will only borrow 3500 an acre to buy land.You have to come up with the rest in cash or other collateral.This is now buying land at 8-12K per acre.

In the 80's many borrowed against the pd for farm to buy the next one and ended up loosing them both.


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## stack em up (Mar 7, 2013)

Great aunt sold 160 next to ours in 1983, not sure of price, but I know great uncle (her brother-in-law) told her the buyer won't ever make the interest. He didn't. It was 21% at the time. It was sold numerous times the next 3 years or so, each time went back. Looking back I know why dad didn't buy it, but it sure would've been have a half section right in one chunk.


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## Vol (Jul 5, 2009)

Yeah, I wanted to buy a quarter section out in Kansas five years ago, but I didn't because I knew it was over-priced....but it sure was great soil and great hunting.....a long way from home....986 miles to be exact.

Regards, Mike


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