Farm or Single Family Residence

[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

To clarify, this happened at the height of real estate bubble. I never saw all the details but I heard second hand that the developer sold off the road frontage lots at a significant premium after minor improvements were made. The portion with limited road frontage was sold to the school for a "discount" with a tax write-off to the seller based on the original sale price.

The school tried to buy addional land based on their purchase price and the adjoining land owner wanted a price higher then the orignal $525,000 per acre. Fighting ensued over price and costs. The market crashed. The addional land was never sold and is now worth a faction of the origanl offer.

The portion of the original tract planned for development was sold to a LLC, part of the project would be completed, the LLC would file bankruptcy, a new LLC would purchase the land, finish more of the project, file bankruptcy, repeat.

Same thing was happening all over the US and the government never figured it out. Everybody made money except the tax payers.

 

[CANative]

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.

Over a third of the entire state of Iowa would fit comfortably in CA's Central Valley alone and it's only one of several agricultural regions in CA.

So don't get uppity about CA's agriculture. :laugh:

 

[DMZwerg]

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.

200bu/ac???

I musta blinked because last I checked 144+/- was the std and I was hearing reports of 160+ on rare occasion (IIRC my cousins were talking 165-170bu/ac last year at the family reunion as being good yields).

 

[Michigan CG]

200bu/ac???

I musta blinked because last I checked 144+/- was the std and I was hearing reports of 160+ on rare occasion.

I just did a farm that was pulling 200 bu. Today I did not that was pulling 180. In parts of Iowa and Illinois 250 is not uncommon.

 

[Joyce Potts]

I've seen SFR with ongoing pot farm ventures. Does that make them rural?

 

[Vermonter]

Exactly here. All those Duck clubs in E. Arkansas are "agri" even though a prime property could bring $10,000 an acre.

Such a racket. Recently bought a group of timber parcels that were in our current use program and one that wasn't. Put that one into a new "wildlife conservation" timber management plan that is (by my eye) identical to the others, but received an additional tax reduction for it.

 

[CANative]

Such a racket.

I don't know if it's a racket or not. It may be a way of mitigating the effect of "rural sprawl" where large tracts are developed with SFRs which need roads and other infrastructure. Some think that is not a good land use and can be harmful.

 

[Vermonter]

I don't know if it's a racket or not. It may be a way of mitigating the effect of "rural sprawl" where large tracts are developed with SFRs which need roads and other infrastructure. Some think that is not a good land use and can be harmful.

Oh trust me...it's the one government racket I enjoy taking advantage of.

Point was they are giving an additional tax break for the exact same timber management plan for no reason other than the title of it.

 

[Terrel L. Shields]

Again, Arkansas's constitution requires that farmland be appraised at "ag rates" (10 x per acre rents ) It is an appropriate deduction and I have a low threshold for what uses should be considered "agri"...including conservation lands, wetlands, grazing land, etc. But there are absurdities...any tax law can be vetted by someone with a sharp pencil.