Investor Reveals His Farmland Buying Strategy

Friday, January 20th, 2012
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Gordon Ommen Principal Caplitaline Advisors talks with CNN Money about his farmland investing strategy and being an economic buyer of farmland, in other words, a non farming investor that will own the land for its rental income.  Iowa farmland has been in the news quite a bit lately but this segment shows how some investors evaluate a farm to determine their return on the property.   Ommen attends a Farmers National Company land auction and comes out unsuccessful, but explains why he made the decisions he did.

Related Posts on DreamDirt TV:

  1. Mahaska County Iowa Farmland Prices on CRI Weekly News
  2. Federal Reserve Bank of Chicago “7th District Land Values up 25% in 2011″
  3. The Iowa Farmland Bubble “Primed to Burst”
  4. Nebraska Farmland Price Record Set in Clay County
  5. Cash Rent Farmland Auctions In Iowa

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Welcome to DreamDirt. This is the blog and website of Iowa Auctioneer Jason Smith . We are Farm and Ranch Real Estate Auctioneers and offer marketing services to sellers of farmland. You can contact Jason directly at (712)592-8965 or by email Jason@DreamDirt.com

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CSR stands for Corn Suitability Rating which has a big influence on the value of tillable farmland in Iowa. CSR is an index procedure developed in Iowa to rate each different kind of soil for its potential row-crop productivity. Soil profile properties and weather conditions are the dominant factors that affect productivity. Slope characteristics are major factors that determine how land should be used. Slope gradient and slope length affect potential erosion rates, water infiltration, and ease and efficiency of machine operation. CSRs provide a relative ranking of all soils mapped in the state of Iowa based on their potential to be utilized for row-crop production.

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Real Estate Term: Pocket Listings

Have you ever heard an agent refer to a "Pocket Listing"? Pocket listings are farms we know are for sale, but not listed. In other words for one reason or another a person has told us "I don't want to list it but feel free to bring me offers" Sellers do this for various reasons, sometimes they don't want neighbors or family to know, sometimes they know several real estate agents and don't want to offend the other.

What you can't find in my listings, I may very well have as a pocket listing so its important to call and open the conversation, let me know what you are after and if I don't have it, I'll certainly keep an eye out for you and that doesn't cost you a dime!