ࡱ > > A = bjbjcTcT :& > >
8
! ! ! ! ! $ #! ^ 8 | 8 ! ! M d ! ! o 6 j ! `P$ݴ X 6 c 0 > , ! ! j ! j 8 8 ! :
RECENT SALES:
67 Acres Cass Co. Nebraska $290,000
80 Acres Dodge Co. Nebraska $316,000
360 Acres Dodge Co. Nebraska $1,400,000
STICKER SHOCK Last fall we started to hear of land sales that were off the chart. These are sales that brought a substantial amount more than what was expected. The big one was the 24 quarter sections in Holt County Nebraska that was expected to bring $ 3,800-3,900 before the sale and ended up selling for $ 5,330.00 per acre. As we entered into the winter these types of reports continued and it seem that just about every neighborhood has a land mark sale. This past week I received a report that a 240 acre farm in eastern Plymouth County Iowa sold at $ 8,050.00 per acre. Reaction we heard is that you cannot farm that out of it which is what we have all heard before. Maybe the buyer had a large inventory of land paid for with a low basis, and averaging the expenses of the new farm may have only raised his land costs slightly, or possibly he/she was sitting on a lot of cash that needed a home.
We have had many potential buyers that have the old sticker shock. It seems to me that this term was developed by the automobile business in the 80s when prices dramatically increased for autos. The same situation has occurred in the land market. When prices started getting stronger in 2008, sellers were encouraged to take advantage of the up land market. Then in 2009 we had a pull back in the overall economy. Sellers were reluctant to make any changes, and they felt that there were limited options for investing their monies. With pull back of the economy, many buyers thought that the land would drop in price, but world demand for our commodities is strong and improving commodity prices along with outstanding yields allowed for land price increases. This created the perfect storm for very strong land prices as the inventory available did not come close to keeping up with the demand.
I do not see the current situation changing much. It seems to me that once commodity prices soften somewhat, then the demand strengthens and prices work back higher. In preparing our budgets for the upcoming crop year, the returns look very favorable even with a slightly lower projected market price. The reduction in fertilizer and chemical prices has been helpful. There certainly is a relationship with the value of the dollar and the commodity prices. When the dollar rises the commodities fall and conversely commodities increase with weak dollar. Although the dollar has been gaining strength, I doubt that it will rally much higher and I expect that it will have pull backs in view of the overall economic climate.
Now that global warming has come to an end we can expect normal growing conditions. Not so fast my friend! With all the winter the US has had, we expect a late, cold, wet spring. This will once again make the commodity market nervous. We know that late planting reduces the yield potential. There is no doubt that we will see producers harvesting this spring alongside of corn planting operations. Even with extremely efficient equipment this will have a delaying affect on a normal situation. We did not mention the threat for significant flooding due to all the ice and snow that has accumulated this winter. So 2010 should be an interesting year and I expect that we will be seeing some more shockers.
No piece of ground is worthless. A little over a month ago, I finally got the chance to list and sell a farm all on my own. I was sure this was going to be great since it was a referral to me by a friend of the familys. Being in the car business for so many years, I got to the point where I lived and died by the referrals I got from friends and family, they could make or break your month! And one thing was for certain, if a friend or family member sent someone to me, I was going to do everything I could to sell them a car.
So with a little help from the boss, we got the paperwork signed by the seller and got the listing. I was excited about the listing, until I looked at the soil maps, and found out that most of it was in CRP for two more years. Disappointed, I made some phone calls to prospective buyers and advertised the farm anyway. I thought to myself.I guess this one might just take a while.
Much to my surprise, we had ample response to the phone calls and advertising. Just when I thought that I might have listed the most useless piece of land, I was amazed that it sold so quickly.
Land values are up, and the market is exceptionally hot right now. It might be the time to take advantage of the situation.
Molly McClure
Landlite February-March Newsletter By: McClure Land Unlimited, Inc.
! b i j g
h
) * 5 D p q
8 C H M 3 X ` ɹt h% hW1 6CJ OJ QJ aJ h
2 CJ OJ QJ aJ h) CJ OJ QJ aJ h% hW1 CJ OJ QJ aJ h% h% 6CJ OJ QJ h% h% 56CJH OJ QJ h hw h,; hw h,; 5B*ph h| j h| UhN j h UmH nH u+
! E j q ; z gdW1 \$ gd,; gdW1 ` m | h r 1 2 6 7 : t B y z ¾ukaak h
2 CJ OJ QJ h7 CJ OJ QJ hw hm 5CJ OJ QJ hw CJ OJ QJ hm CJ OJ QJ h% CJ OJ QJ hw 5CJ OJ QJ h% h% 5CJ OJ QJ h hW1 h% hW1 CJ aJ h% CJ OJ QJ aJ hJ CJ OJ QJ aJ h% hW1 CJ OJ QJ aJ h$4} CJ OJ QJ aJ #z ı hN h| "hW1 hW1 5>*CJ OJ QJ ^J "hW1 hW1 6>*CJ OJ QJ ^J %hW1 hW1 56>*CJ OJ QJ ^J %hW1 hW1 56>*CJ` OJ QJ ^J h h% hm 5CJ OJ QJ h,; h,; CJ OJ QJ h,; CJ OJ QJ z
& F gd,; 8
00 1+:pW1 / =! " # $ % h j 6 6 6 6 6 6 6 6 6 v v v v v v v v v 6 6 6 6 6 6 > 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 h H 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 2 0 @ P ` p 2 ( 0 @ P ` p 0 @ P ` p 0 @ P ` p 0 @ P ` p 0 @ P ` p 0 @ P ` p 8 X V ~ OJ PJ QJ _HmH nH sH tH H ` H N N o r m a l d \$ CJ _HaJ mH sH tH D A` D
D e f a u l t P a r a g r a p h F o n t R i R 0 T a b l e N o r m a l 4
l 4 a ( k (
0 N o L i s t 8 8 W1 0 H e a d e r H$ . . W1 0 H e a d e r C h a r 8 8 W1 0 F o o t e r H$ . !. W1 0 F o o t e r C h a r @ @ 2@ ,; L i s t P a r a g r a p h ^m$ PK ! [Content_Types].xmlj0Eжr(Iw},-j4 wP-t#bΙ{UTU^hd}㨫)*1P' ^W0)T9<l#$yi} ;~@(Hu* Dנz/0ǰ $ X3aZ,D0j~3߶b~i>3\`?/[G\!-Rk.sԻ..a濭? PK ! ֧ 6 _rels/.relsj0 }Q%v/C/} (h"O
= C?hv=Ʌ%[xp{۵_Pѣ<1H0ORBdJE4b$q_ 6LR7`0̞O,En7Lib/Se е PK ! ky theme/theme/themeManager.xml M
@}w7c(Ebˮ CAǠҟ7՛K
Y,
e.|,H ,lxɴIsQ}#Ր ֵ+!,^$j=GW)E+&
8 PK ! P theme/theme/theme1.xmlYOo6w toc'vuر-Mn iP@I}úama[إ4:l ЯGRX^6؊>$ !)O^rC$y@ /yH*)UDb`}"qۋJחX^)I`nEp)liV[]1M<OP6r=zgbIguSe bORD۫qu gZo~ٺlAplxpT0+[}`j zA V2Fi@qv֬5\|ʜ̭NleXd sjcs7f
W+Ն7` g ȘJj|h(KD-
dXiJ؇(x$( :;˹! I_TS 1?E ??ZBΪmU/ ?~xY'y5g&/ɋ>GMGeD3Vq%'#q$8K )fw 9:ĵ
x}rxwr:\TZaG*y8IjbRc|XŻǿI
u3KGnD 1NIBs
RuK>V.E L+M2#'fi ~V vl{u8z H
* :( W ☕
~JTe\O*tHGHY }KNP*ݾ˦ TѼ9/#A7qZ $*c?qUnwN%Oi4 =3ڗP
1Pm \\9Mؓ2aD];Yt\[x]}Wr|]g-
eW
)6-rC Sj
id DЇAΜIqbJ#x꺃 6k#ASh&ʌt(Q% p%m&]caS l=X\P1Mh9MVdDAaVB[݈fJíP|8 քAV^f
Hn- "d>znNJ ة>b&2vKyϼD:,AGm\nziÙ .uχYC6OMf3or$5N HT[XF64T,ќM0E)`#5XY`פ ;%1U٥m;R>QD DcpU'&LE/pm%]8firS4d 7y\`JnίI R 3U~7+#m qBiDi*L69mY&iHE=(K&N!V.KeLDĕ{D vEꦚdeNƟe(MN9ߜR6&3(a/DUz<{ˊYȳV)9Z[4^n5!J?Q3eBoCM m<.vp IYfZY_p[=al-Y}Nc͙ŋ4vfavl'SA8|*u{-ߟ0%M07% < ҍ PK !
ѐ ' theme/theme/_rels/themeManager.xml.relsM
0wooӺ&݈Э5
6?$Q
,.aic21h:qm@RN;d`o7gK(M&$R(.1r'JЊT8V"AȻHu}|$b{ P8g/ ]QAsم(#L[ PK- ! [Content_Types].xmlPK- ! ֧ 6 + _rels/.relsPK- ! ky theme/theme/themeManager.xmlPK- ! P theme/theme/theme1.xmlPK- !
ѐ ' theme/theme/_rels/themeManager.xml.relsPK ]
x
x & ` z z d 0 # A A @ H 0 (
X (
B
B
B
B
B
S ? z
%5 . /: t z
7 . 4 t x 7 /: t x - . t
D
0 ^`OJ PJ QJ ^J o( - ^`OJ QJ ^J o( o p^p`OJ QJ o( @ ^@ `OJ QJ o( ^`OJ QJ ^J o( o ^`OJ QJ o( ^`OJ QJ o( ^`OJ QJ ^J o( o P^P`OJ QJ o( D
c +
,; B % W1 /rJ
F' Microsoft Office Word 97-2003 Document
MSWordDoc Word.Document.8 9q