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Farm next door for sale- I am priced out of the market. [View All]

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Wcross Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Sep-12-06 08:18 AM
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Farm next door for sale- I am priced out of the market.
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I just learned my neighbor is selling his farm. It is a small one (68 acres) and has two chicken barns with a Tyson chicken contract. Asking price? 600,000.00 for the whole place. The barns will throw off roughly between 40-50k a year. The chicken contract can be cancelled at either parties request at any time.
The land is not cleared and its hilly. There is a doublewide mobile home on the property. I talked to his agent about buying 20 acres of his land that adjoins mine. I asked what price range I was looking at and was quoted between 4 and 10k an acre!!!!!!!!
I paid 2400 an acre 4 years ago for cleared productive pasture land! I was willing to go as high as 3k and acre.
I don't know who is going to be able to make a go of his place. If someone had 600k to invest they could do better than a 9% return on their cash. They will have to WORK for the 9% return they will get with the chicken business. (It's a LOT of work and a LOT of risk).
They will not be able to run many cattle on the land unless they have a hay field nearby to feed them over the winter. He only has about 20 acres in pasture out of the 68 and the cows will have to use that in the summer.
Selling the place off for a subdivision is not likely. There is no city water or sewer lines. As I said the place is hilly, at some points a 45 degree down angle.
I guess I'm just ranting a bit- The guy paid less than 200k for it in 2000 and has made absolutely no improvements, in fact it has gone downhill with overgrowth.
The profits from the chicken barns has not increased at all. For just sitting on the place for 6 years he priced it at a 300% profit.

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