In Iowa, most farmland is owned by folks 55+. A third in their eighties. Half women (widows by and large).
The land, if it's farmed at all, is by a younger tenant farmer who pays cash rent.
A huge intergenerational transfer is imminent. What the grandkids will do with eighty acres in Iowa is anybody's guess.
apothegm•49m ago
Sell for cheap to big corporate farming conglomerates. At least until the market is so saturated that even the conglomerates have no use for more.
Meanwhile, a few here and there will be snatched up by people from coastal cities who have made enough to FIRE and have romanticized farming. They won’t grow significant crops but will raise a few chickens and goats and a garden full of cabbages and peppers.
If you had the right background and resources, you could probably make a killing buying up 80 acres for a pittance, carving it up into 5- or 10-acre plots with modern amenities (upgraded plumbing; solar; excellent internet) and pre-built facilities for small numbers of farm animals, and selling them off to that market with the value-add of instant community.
codingdave•27m ago
Carving up farmland into home plots is easier said than done. Most fields have zero infrastructure, so you need to drill wells, run power lines, streets and/or ROW for driveways. Internet access is pretty easy as you get get a fiber line run. You'll need to work with the local town and county for permits and be sure that they can handle the additional services such as road maintenance, plowing, trash pickup, etc.
It could be done, but it is not just re-drawing some parcel lines and calling a realtor. Even once you get it done, you now need to build somewhat expensive homes to recover your costs, and the FIRE folks will then probably buy that century farmhouse down the street and re-parcel the connected field to keep a few acres for themselves and sell the rest to the neighbor, as they can almost get a house in the country for free if they do so.
codingdave•42m ago
80 acres sounds big to people who don't live in the country, but is fairly small potatoes when it come to agricultural land. Such parcels will get consolidated into nearby large operations/corporations. Sometimes that is a corporate farmer, sometimes a local family or two just hoovers up land as it becomes available. But there is no guessing needed - land ownership will consolidate.
JoeAltmaier•1h ago
A huge intergenerational transfer is imminent. What the grandkids will do with eighty acres in Iowa is anybody's guess.
apothegm•49m ago
Meanwhile, a few here and there will be snatched up by people from coastal cities who have made enough to FIRE and have romanticized farming. They won’t grow significant crops but will raise a few chickens and goats and a garden full of cabbages and peppers.
If you had the right background and resources, you could probably make a killing buying up 80 acres for a pittance, carving it up into 5- or 10-acre plots with modern amenities (upgraded plumbing; solar; excellent internet) and pre-built facilities for small numbers of farm animals, and selling them off to that market with the value-add of instant community.
codingdave•27m ago
It could be done, but it is not just re-drawing some parcel lines and calling a realtor. Even once you get it done, you now need to build somewhat expensive homes to recover your costs, and the FIRE folks will then probably buy that century farmhouse down the street and re-parcel the connected field to keep a few acres for themselves and sell the rest to the neighbor, as they can almost get a house in the country for free if they do so.
codingdave•42m ago