Whats this!!!! Farmland prices rise faster than some Manhattan and London apartments

Discussion in 'Economics' started by S2007S, Feb 21, 2007.

  1. yeehaw, a newyorker that wants to be a redneck, now don't that beat all! If you want some land in NC you better hurry. Right now it is selling like dollar bottles of Jack at the ABC store. Seriously, around wake county land values keep rising, you can get some really good deals down east, and slightly north of wake county, but this area is growing so fast its scary. Try doing a search on Rolesville NC, this town literally had one traffic light for years now it has 3 and $400.00 boxes that Lennar calls homes on 100x100 lots. http://www.ci.rolesville.nc.us/ Also as more and more resorts, condos etc move to the southern coast in NC, you know once the coast fills up there will be a rush to buy below myrtle beach in south carolina. Also remember the farmland in SC is much cheaper than NC. Its interesting that I know some good ol boys that became instant millionaires selling grandpas farmland to developers.

    Oh and as far as shooting varmints try a small caliber flint mounted southern mountain rifle, you can find everything you need right here son. http://trackofthewolf.com
    but don't use pyrodex, use the real stuff.

    The Ever Lovin Southern Livin VIPER
    #41     Feb 22, 2007
  2. Developers/builders got burned badly in SC in the last few years.

    Atlanta is also deteriorating.
    #42     Feb 22, 2007
  3. <i>"but don't use pyrodex, use the real stuff."</i>

    I'm a Triple-Seven man myself... new school when it comes to smokepoles.

    SC is a beaver trapper's paradise. Would love to spend my winters down there in the swamps, pounding beavers and other fur :D
    #43     Feb 22, 2007
  4. BuyLow, interesting as far as SC is concerned, what area, or the state in general?

    The Ever Interested VIPER
    #44     Feb 22, 2007
  5. lescor


    This thread has piqued my interest, partly because I live in the middle of a huge grain farming area in central Canada.

    I bought a local farming newspaper today to get an idea of $/acre costs and something doesn't line up. It looks like good quality, cultivated grain growing farmland is going for $200-400/acre in these parts, $700 was about the highest I could find. And there is a lot of it available. I would like to know why farmland south of the border is selling for 3-10x as much, or is it a great arb opportunity? I suspect the fat US farm subsidies have something to do with it, as well as a declining US dollar.

    What kinds of yields (bushel/acre) do you get on $3,000/ acre land for wheat? What about vs. $500/acre?
    #45     Feb 25, 2007
  6. Concur; The chemical industry has spend too much money on convincing the world that ethanol is a green fuel; but in fact, it is not.

    You need to spend subsidies on growing the corn and use electricty to get ethanol from corn; in the process; it has used a lot coal; which is the cheapest fuel at the moment. The entire process creates more pollution than the ehtanol can eliminate at the end.

    Farming is very tight margin business; very low margin; most of people on this board has litlle or no ideas about farming. Let alone with yield per acer;
    #46     Feb 25, 2007
  7. <b>lescor</b>, there are several factors driving farm = rural land prices in the U.S.

    Corn production for ethanol is one temporary condition. Most of Canada's wheat basket region has too short a growing season for corn. From eastern Albert thru Manitoba to middle of Ontario, cold weather grains (wheat, barley, rye) , grasses (alfalfa) and hemp (seed oil, fiber) have ideal growing conditions.

    Not so much with corn... short-season strains have lower yields and a brief window between germination temps of soil and last/first frosts. Your soil is terrific up there, but the frost-frost cycle is narrow compared to our middle plains belt.


    Second catalyst driving rural US land prices is suburban sprawl. The internet advent only hastens this. I run what amounts to a mini-hedge fund out of my house, built in 1850 circa within a town of 1,800 people and zero stoplights.

    I'm quite sure more money passes thru my DSL lines each week than any other business in town except for both banks. That would never be possible before the web... now telecommuting is a big transition of our population. Why live in NYC or Chicago? Move to the country where crime is nil, spaces are wide, pace of life is slow and the women are still hot (laugh).

    With suburban sprawl comes development. Super WalMarts and their ilk. Mini-cities are the new urban centers. Amish, Mennonites and other farmers displaced in one area take their new wealth to new places and repeat the process.

    One family here I know has a 58-acre piece of land they bought in the 1960s for +/-$5,000. It is now in negotiation with a developer for somewhere above $2mil. They turned down $2mil, are holding out for $3mil and will get it. Why? Sits on a knoll overlooking a vista view of the lake. Water & sewer just went thru, along with other subdivisions already sold out.

    Condos in Miami half-built go unsold. Rural pockets are snapped up like hotcakes.


    Third catalyst is timber investment = hunting clubs. In our country, hunting has evolved from a subsistence pursuit to hobby past-time. The advent of Outdoor Channel network and ESPN2 have cast a whole different light on hunting & fishing. Prime hunting = fishing lands sell at premiums above open farmland. If you have 100 - 1,000 acres of ravines, swamps and timbered ground, you have deer- turkeys - ducks - pheasants - quail. That is premium property... there are high-end realtors who only deal in sportsman properties for wealthy clients.

    With the booming global economy comes high demand for fine furniture and flooring. Red oak, white oak, maple, walnut and cherry logs are highly valued and rising all the time. The amount of hardwood logging past few years has accelerated to incredible degrees. It takes 60 - 150 years for hardwood trees to mature. Definitely an asset in demand with three generations' replacement timeline.


    Canada doesn't (yet) have the high demand for suburban sprawl, shrinking opportunities for high-quality hunting and temporary demand for corn production. U.S. has had the first two for years, corn production just adds more pressure to the mix.

    Given the opportunity, I'd love a big chunk of ground in Saskatchewan or Manitoba myself. At the prices you quote, that might be sooner than later!
    #47     Feb 25, 2007
  8. Viper, mainly Columbus metro, but Spartanburg all the way east to Florence too.

    Inland areas of SC and NC are weak.

    The coast in both is solid, from what I've heard, though I never got a chance to check it out myself. I've heard NC coastal is very strong, still.

    Check out my comments (and others) in this thread.

    #48     Feb 25, 2007
  9. If anyone here interest to know the cost of growing corn per acre: 400~450 CAD per acre (Ontario) and $4 per bushel
    the state side is about the same if you don't count the currency difference; which is the reason US farmer hates the competition from North. LOL

    In a way; I had admitted that I am/was a bad farmer. Looking at this thread; the last thing i can do is selling land.
    #49     Feb 25, 2007
  10. lescor



    This is an article about sharply rising land prices in western Canada- Alberta and Saskatchewan specifically. 2% a year for decades, 20% the last two years, and most of that in the last 6 months.

    I've been doing research all afternoon, have found out crop yields, lease rates, acerage costs and am now learning soil types per region (fun little project!). I'm sure a guy could cover his carrying costs and probably make a few percent with leases (the land taxes are minuscule). It's like a free call option on the land appreciation.
    #50     Feb 25, 2007