farmland grab at home
Despite Drop in Commodity Prices, Farmland Values Rise
By PAUL SULLIVAN
DAN LINDSTROM remembers looking at a piece of Nebraska farmland six or seven years ago that cost $3,300 an acre. Raised on a farm, he ran the numbers with his brother who is farming the family land and concluded that it was too expensive. He figured that with a 2 to 3 percent return, it made more sense to put the money into a dividend-paying stock and have his brother lease additional land.
A few weeks ago, Mr. Lindstrom said similar land sold for nearly $11,000 an acre.
This is a common story across the farm belt. In Indiana, William C. Ade, who made a fortune in oil and gas exploration in Asia, said he stopped adding to his 1,000 acres when the price passed $5,000 an acre.