I just finished reading an article out of Carroll Iowa today that I wanted to pass along about the question of an Iowa Farmland Bubble. Mulhlbauer says farmland “bubble” primed to burst
The headline was a little misleading once you read the article, I suppose you could argue the headline is accurate if you wanted to split hairs over words but in reality Iowa Represenative Dan Mulhlbauer said he felt the market would pull back… a whole lot different than what I consider the word burst to me.
I can remember when my wife was expecting our first child, I had insisted before any tests were done our child was a boy. I told them before the ultrasound, I knew it was a boy. We made our way to the first ultrasound and got to the point where they would determine boy or girl, as I watched the screen it appeared I was right and then the medical practioner administering the test confirmed “yep its a boy” Estatic that I had been right the whole time I proudly sat up and proclaimed my superior intuition that I had known the whole time as if I’d had some magic power or special ability. The gal with the bottle of cold gel and prod didn’t miss a beat as she said in a monotone voice “and you had a 50-50 chance of being right, congrats on not choosing the wrong one”
My ultrasound story reminds me of the “farmland bubble” question. I don’t know that there is anyway for anybody to know what the future holds. If they did, they’d capitalize on it right now. They’d be able to tell me what corn will sell for 2 years from now and nobody has that ability, just like I did not have the ability to know what sex my new child would be until it actually happened and there was confirmation. Nobody knows today what will happen, we have a very very strong ag sector right now and alot of indication it will remain strong for some time, but common sense keeps telling us this pace can’t keep up. The truth is you can choose burst or no burst right now and you have a 50-50 chance of being right. Depending on which side of the ball you are on determines your path forward.
Are you considering selling a productive farm in Iowa? I think the article said it best when it said “Muhlbauer said some heirs of longtime local farmland see this as a prime time to sell.” There is a great deal of wisdom in that statement, we are set to at the very least level off, potentially pull back and some say “burst” Can you take the risk of waiting until prices start to drop before you decide to go, at that point it could take 60 days to prepare a farmland auction while things continue to slip and the mood has eroded, by then its to late and you might as well sell at the bottom because the ride down will be very fast.
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agriculture, auctions, farmland for sale, farmland investment, Farmland Ownership, Farmland Value, Iowa Farmland, Iowa Land Values, Land Selling Tips