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Old 07-23-2014, 03:39 PM   #21
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GMO just published a white paper on this. Registration is required, no fee or spam. "A Farmland Investment Primer" here.

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Old 07-26-2014, 05:53 AM   #22
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Farmland is not very liquid. At best, I have maybe 25 years left--how many good years, no clue.

I have the opportunity to buy my late FIL's farm, in a nice place, in a nice state. DW has advised me, NO WAY.

Here are a few things I have learned:

1. There is a lot of abuse of eminent domain. We have been forced on three different occasions by court order to permit easements across our property. These easements have been to private concerns, not for roads, schools, etc. as eminent domain was intended.
This is true of her family farm as well. Beware.

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Old 07-27-2014, 09:54 AM   #23
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Liquidity of farmland may depend quite a bit on location and type of farm. From my experience where row crops are the 'main game', farms are sold at auction more often than not.

Local buyers are fully aware of the potential of a particular piece of ground. Investors or outsiders can generally evaluate using various stats like CSR (Iowa), or actual production history. Cash rent prices in a particular area are fairly well known.

These stats enable a piece of ground to be fairly valued and sold quite quickly.

Farm Auctions - Land Auctions
From the link:

Time Frame

The allowed time for a real estate auction varies depending on the type of property, but generally it is 60 to 90 days from the initial planning stage to closing. The auction itself may take from just a few minutes for single property to several hours for a multi-parcel auction.
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Old 07-27-2014, 11:02 AM   #24
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As the farmer who won the lottery said when asked what he was going to do with his winnings "Keep farming until it's all gone”
learn, work, save, invest, fire
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Old 07-27-2014, 11:40 AM   #25
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I have an acquaintance in a different part of the country trying to sell 'farm land', or so it's termed in that area.
Their problem (and one for potential buyers), is how to determine the value of this 80 acre piece. I see it as purely pasture. Possibly ok for grazing cattle cattle. Open enough in some areas to grow hay. It could also be considered recreational. Hunting, camping, etc. Income from this property is currently non-existent.

It's been on the market with a realtor (and overvalued IMO) for 3-1/2 years.

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