As we all know the next sales season has begun, but unfortunately for the Land Sales Bulletin we don’t see the actual results until after the sale close’s which most haven’t yet. If you have a moment email me any “unofficial” results at firstname.lastname@example.org, it would be greatly appreciated. For example 160 acres in Lafayette County, WI sold at auction in mid October for $12,500 per acre to an investor. The buyer owns considerable holdings in the area and was adding on. This is as good of corn farm as you will find, no matter what state you are from (No that is not a misprint, it is 200+ bushel corn ground and it is located in Wisconsin). This was substantially higher than the seller expected and I was told a farm family was the contending bidder.
We are excited to announce a few changes at the LSB. A new website (www.landsalesbulletin.com) has been launched for Indiana and Wisconsin and we (or should I say our computer consultant) are putting the final touches on Illinois. We plan to start moving our Illinois subscribers to the new site soon so Illinois subscribers be on the lookout for an email from the LSB with details. Upon completion of Illinois we will combine all three websites into one. Down the road we will be adding additional features such as a blog to post any information that has to do with land sales, just to mention one.
Finally, I read an interesting article on a study on how farmland values are determined. That doesn’t sound earth shattering and actually makes me look pretty geeky (I haven’t studied the whole article yet so hold off before making that judgement), but it indicates that farmland values are only partially explained by ag returns. The article states that a 1% increase in rental rates results in a 0.25% increase in cropland values and a 0.14% increase in pastureland values. It also links agricultural land values to other factors than just farm income. For example proximity to a college or golf course has influenced values in some instances. I think we have all known this, but this study puts a number to it. See the article on page 12 in section one.