an associate's family has a farm for sale...
so, i've been watching the pricing and action.

immediately the pricing was 1/3 more than i thought was a right price... i thought they were dumb to price it that high... I was wrong. bad wrong.

then they raised price!

the farm has good record for commodity poundage... well above average...
that helps the value..
it is rural... no one wants this land for a housing subdivision.

this is the wrong time of year to be buying or selling farm land. farmers want to worry about and work with their current crops, then, if all goes well this year, this fall they will consider buying additional acreage.
however, three things are happening..pushing prices up.

1... wells... the government is limiting permits for wells... the big wells that are used for irrigation... maybe even not allowing a permit. period for the easy to get water... if you want to go down to the deep aquifers,, then maybe you can get a permit, but digging deep costs hundreds of thousands of dollars. so, if you have an irrigation well, your property value just went up.
2... demand... foreign buyers are buying u.s. farmland... china... and others.
folks are leaving the big cities and looking for farms and retreats... big $$ coming in with cash and quick closings. doctors, business owners, professionals, oil folks,
from out of state in big money category.
little money, homesteaders, scared city dwellers, retirees with big 401's and stock accounts, are coming in looking for small 10 to 100 acres .
many counties have -0- properties for sale. or just one or two.

3... cost of money.. interest rates are low... more than on a house only property, but still very low. purchaser can spend more for a property at 4% than he can when rates are 8%

comments?
how are things in your area, especially if you are rural. or familiar with a rural area.