July 24, 2014
After being in the land business for my entire adult life I have been constantly amazed by what I have learned or observed and how many past clients, friends, bankers, attorneys and I hope future clients ask me for my thoughts on the land business. A couple of quick thoughts. I bought my first farm in the early 1980's and everyone told me that land could not do anything but go up. I was young and just married. I paid $500 per acre and in a years time I couldnt pay the note and it was worth $100 per acre. You could hardly give it away. Second, there will always be land; everytime a farmer dies land becomes available. It was or is just a matter of time before this current land frenzy takes a breath and retreats. The farmers cannot afford these cash rents at anything below $5 and especially below $4. They have had a great run. Last thing is and an appraissor told me this that when land prices start stabalizing or going down the auctioneers will start slowing down and the realtors business will increase. When looking to list or buy interview agents and then choose. I will keep blogging and if you have thoughts or subjects to discuss please email me @ email@example.com.
Thank you. Drennan Bailey