WCMO-SWMO Area | Reality speaks - 4/16/2024 21:13
so why did those guys in 1982-1987not jump in and buy up all of the ground that the lenders were trying to dump? Maybe they did the math and realized that their CD earning 9%+ was better than farm ground at 3% return and actually losing value. And they weren't making anymore land back then either.
In my area we had 7 bad years in a row starting in 1980..Lots of us grew practically nothing in 1980 due to drought and extreme heat..If it wasnt drought it was floods plus the high interest.....1981 and 1986 were as wet as 1980 was dry..Crop insurance didnt amount to much so that sure didnt save anyone..I lost lots of neighbors in the mid-late 1980's that had all bought land in the late 1970's....I sure went to lots of bankruptcy sales..A few got write downs and they are all huge farmers today...Even the farmers that were in good financial shape barely made it and they werent buying any land in the 1980's...They were just trying to hang on and pay back loans...Land bottomed here at about $500 per acre in 1987...It took until the early 2000's before it saw $1,000 per acre again like it was selling for in 1979-80...I bought 80 acres from Mom in 2006 for $1,000 per acre and right after that land prices took off and now it's in the $5,000 to $7,000 price range.
Edited by Stormwatcher 4/17/2024 08:44
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Crazy Land Auction
