How have the values of Mississippi Delta farmland investments grown over the past 20 to 30 years and how does this reflect on current value trends?
Over the last 20-30 years farmland properties in this region have gone through periods of stable values followed by periods of upward price adjustments. We are currently in an upward adjustment period. In the 1970’s we were attempting to purchase several farms for $500.00 per acre. The owners were seeking $550.00 per acre. While the negotiations were underway, a highly publicized sale occurred. A large plantation was sold through a bidding process. It brought $1,000.00 per acre and overnight, farmland prices for properties of similar quality in the Mississippi Delta adjusted to the $1,000.00 per acre price (never to fall below this mark again). During the 1980’s our company was heavily involved in investing for international investors (primarily Swiss and German). These investors were attracted by the return on investment of the properties along with the growth potential. They were especially attracted to the historical stability of our agricultural farmland market. Of course, the stre
