Farm or Single Family Residence

[residentialguy]

Do the farmer subsidies ever come into play with farm appraisals?

 

[Michigan CG]

Do the farmer subsidies ever come into play with farm appraisals?

Not in my practice, it may for some, I don't know.

 

[CANative]

$2.7 M for 38 acres is $77,000/acre. In Minnesota???? you are on the northern edge of the corn belt and are in the top ten producers of corn. You most likely also have winter wheat up there. The highest ag sales in the corn belt is in Iowa and central Illinois at $8,000-$10,000/acre (which is insane). $77,000 cannot be ag land in Minnesota.

Different parts of the country will have significant differences in ag use and ag land values. Good vegetable land is worth more than a good corn field in my area.

In my area many farmers are pulling 160-200 bu of corn per acre and the land is now going above $4,000/acre. 60 miles away they are only pulling 130 bu and the land is selling for $2-3,000/acre.

That real expensive Iowa and Illinois land is pulling out 275 bu corn and is renting for $400-500/acre while here no one pays more than $200/acre rent and most are at $150/acre and below.

I would bet the wackos in California are paying real high dollar rent for vegetable land if they can produce most of the year. The California corn production is almost zero.

I wouldn't call over 27 million bushels almost zero, although it pales in comparison to the states in the corn belt.

Land pricing in the Central Valley ranges from $11k to $40k+ per acre. Water rights play a huge roll in pricing. If it's enrolled in the Williamson Act (California Land Conservation Act) it's taxed at a tiny fraction of that. The tax value is based on it's income potential capped at a non-market rate.

 

[Terrel L. Shields]

Our state vets soil types for productivity. They translate that into a rent figure. The rents times ten = a value...(a value in use) If Captina soils rent for $30/acre, then the MV is $300 per acre. If Jay/Taloka rents for $40, then the MV is $400/ac.

 

[Farmland]

My kind of topic. Taxes assessments varies by state. In Illinois if the land has a historic use of ag and has never had a change in use it is taxed at the ag use, which is based on soil productivity. It is not based on the highest and best use. For example, pre housing crash, circa 2005, I was involved with a farm in Naperville, Chicago subburb, half the 160 acre farm sold for $525,000 per acre ($12 per square foot). We actually paid someone to farm the remaining part for the tax savings. We collected no rent, received no crop and paid the farmer just for the tax saving of retaining the ag assessment.

Also, farm subsidies do not effect farmland values in Central Illinois.

 

[residentialguy]

I was involved with a farm in Naperville, Chicago subburb, half the 160 acre farm sold for $525,000 per acre

80 acres of farmland sold for $42,000,000! :Eyecrazy:

Something doesn't smell right. 74 acres on the highest demand lake front property in MN sold for 17 million

 

[Farmland]

80 acres of farmland sold for $42,000,000! :Eyecrazy:

Something doesn't smell right. 74 acres on the highest demand lake front property in MN sold for 17 million

This was all commercial land on the corner of two major roads in Naperville. Costco is the largest store that sits on that site now. The school district was involved in part of this (thery were, at the time, given a deal on the land) and a housing development was planned but never completed.


http://activerain.com/blogsview/233...district-204-indian-prairie-third-high-school



http://en.wikipedia.org/wiki/Naperville,_Illinois

"Naperville was named as the wealthiest city in the Midwest and eleventh in the nation with a population over 75,000."

 

[residentialguy]

Upon more research, I have found farm land that sold high.
38.51 acres sold for $4,995,747 in 2006 - no buildings. (was a contract for deed). I have high suspect that there was an error in the sale price.

 

[Michigan CG]

I wouldn't call over 27 million bushels almost zero......

I would. That is 108,000 acres at 200 bu/acre. Iowa has 17 million acres of corn fields and will put out over 2,400,000,000 (that is billion with a B) bushels of corn this year. Illinois will be close to that.

 

[Farmland]

I would. That is 108,000 acres at 200 bu/acre. Iowa has 17 million acres of corn fields and will put out over 2,400,000,000 (that is billion with a B) bushels of corn this year. Illinois will be close to that.

I agree, the US is projecting 12.9 Billion bushel corn crop in 2011.