# BIG SALE of Land



## endrow (Dec 15, 2011)

http://www.agweb.com/mobile/article/monster-8600-acre-illinois-auction-fetches-553-million-naa-ben-potter/


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## Teslan (Aug 20, 2011)

The auctioneer made or will make a tidy bundle on that sale.


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## Farmerbrown2 (Sep 25, 2018)

That's what I'm looking to buy as soon as I win the power ball !


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## hillside hay (Feb 4, 2013)

I say make 'em farm it!


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## PaMike (Dec 7, 2013)

So basically they bought a huge chunk of land and then they are going to try to get top dollar in rent cause it of the efficiently of farming large parcels...well thats a great idea except corn is $4/bushel...

so what is this Farmland Partners Inc? It said they funded the purchase with the sale of stock...??

Just found this...

http://www.farmlandpartners.com/

Great,a publicly traded company that is in the business of buying up farm land...splendid...almost as great as day traders messing with the commodity markets..


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## Vol (Jul 5, 2009)

PaMike said:


> So basically they bought a huge chunk of land and then they are going to try to get top dollar in rent cause it of the efficiently of farming large parcels...well thats a great idea except corn is $4/bushel...
> 
> so what is this Farmland Partners Inc? It said they funded the purchase with the sale of stock...??
> 
> ...


Yep, we have posted articles about FLP formation and purchases for a couple of years now.

Regards, Mike


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## PaMike (Dec 7, 2013)

Vol said:


> Yep, we have posted articles about FLP formation and purchases for a couple of years now.
> 
> Regards, Mike


Wow, somehow I missed them...So where did they get their money to get started? Just a bunch of investors? Land does tend to be a good investment but typically it pays returns over the long run, although maybe in the areas they buy in the taxes are low enough that the land rent will give a return on investment....

I saw on their website they have a listing of every farm they own, the soil map and an Arial map....If you rent from them I wouldn't expect to have it forever...


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## Vol (Jul 5, 2009)

Mike, they did start out with several investors on their first acquisition and rather quickly grew from there. It seems like their first purchase was in Illinois. With low interest rates and poor returns in the banking industry, this makes a lot of sense. When interest rates eventually climb and give better returns in the market place, you will see this FLP begin to fade some.

Regards, Mike


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## swmnhay (Jun 13, 2008)

PaMike said:


> Wow, somehow I missed them...So where did they get their money to get started? Just a bunch of investors? Land does tend to be a good investment but typically it pays returns over the long run, although maybe in the areas they buy in the taxes are low enough that the land rent will give a return on investment....
> 
> I saw on their website they have a listing of every farm they own, the soil map and an Arial map....If you rent from them I wouldn't expect to have it forever...


https://www.reit.com/news/reit-magazine/january-february-2015/farming-reits


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## endrow (Dec 15, 2011)

It is interesting and proves more we farm in different worlds . Is that typical land price $6400? What do you think the cash rent will be ? I know cash rents are coming down here.


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## swmnhay (Jun 13, 2008)

endrow said:


> It is interesting and proves more we farm in different worlds . Is that typical land price $6400? What do you think the cash rent will be ? I know cash rents are coming down here.


I'm not from there but $6400 seems very cheap for Illinois.

If it was here it would be below avg ground to be in that price range.Well below.


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## deadmoose (Oct 30, 2011)

That is average per acre, correct? How much is tillable?


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## mlappin (Jun 25, 2009)

There is a doctor in our area that buys land every chance he gets, I imagine for the very same reasons already mentioned, pathetically low returns on any kind of savings.

I also heard rumors he got started in land from selling a rather sizable chunk for development then rolled that money over into farm land.


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## Vol (Jul 5, 2009)

deadmoose said:


> That is average per acre, correct? How much is tillable?


That is correct moose....and the average price always includes the lower end tillage grounds as well. The high end tillage ground will quite often be valued at about twice the average price.

Regards, Mike


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