The market for Midwest farmland, especially prime Iowa farmland, is so widely covered during hot markets that you’re no doubt well aware of the major stories. For example, when a property sold for $25,000 last May, it was widely reported. Another parcel fetching $30,000 per acre last November caught even more attention. I am always reminded of two age-old real estate axioms: “one sale does not make a market” and “location, location, location”. Sage reminders that will never become obsolete
How much longer can the current bull market last in corn and soybeans? That is, without exaggeration, the multi-million dollar question. This current bull market began during the second half of 2020 and has had impressive staying power since then. Is this run different than in the past or are we bound to repeat history, as we usually are inclined to do. Grain brokers (and stock brokers) have a disclosure paragraph at the end of their email or newsletter stating that “past performance is not an indication of future behavior” or something similar. This is a dubious statement. Of course past performance can give us insight into future moves, what else gives us a better predictor? Human nature is unchanging and as much as we like to think we have evolved and people change, they don’t. Individual people can change, but when everyone is put together (the entire market), history tends to repeat itself.
Grant Aschinger, Accredited Farm Manager, was installed as President of the Iowa Chapter of the American Society of Farm Managers & Rural Appraisers at their annual meeting at the FFA Enrichment Center in Ankeny, Iowa on February 1, 2023. Grant will serve a one-year term, then will serve one year as president of the chapter’s Education Foundation. He has served on several chapter committees including professional education, scholarship and membership, along with serving on the chapter’s board of directors. He previously was presented with the chapter’s Early Career Award in 2021. Grant joined Stalcup Ag Service in 2013.
If you’ve ever wondered about owning farmland with your Individual Retirement Account, the answer is you can. Of course, it’s not without strings attached.