Large contiguous row crop farms are very hard to come by right now, but here is an opportunity to buy a group of farms that together make up a large, productive upland farming operation. There are a total of five separate parcels of land located in northeast Nodaway County, Mo. All are mostly row crop and hunting land (all the tracts have hunting leases in place that more than pay for the real estate taxes). All are cash rented with the payment of the rent due in two installments, 10% of the year's cash rent in advance after the previous crops have been removed and the remaining 90% of the cash due March 1, before planting time. This makes the leases more secure because the landlord will have plenty of time to find a new renter if one of the current renters doesn’t come up with the rent money before farming season for one reason or another. The locations of the individual tracts offer good diversification across a relatively small geographic area. The farms are all in good condition and will make someone a good investment over the years. In addition, there are good hunting opportunities each individual tract. Most of the conservation work has been done and this investment will produce a good rate of return year in and year out. There are no wind leases on this property currently, but the present administration has plans to greatly increase the wind generation capacity across the country and there are several wind farms already in the vicinity of most of these farms. I would expect most of this property to be soon leased to wind generator companies in the relatively near future.
Price: $6,676.78/Taxable Acre or $6,995,000.00 Total
This combination of farms offers lots of diversity and protection from bad weather events like hailstorms, tornados, drought, and big rains due to scattered locations of the tracts. Some major weather problem could damage crops on one of the farms, but it’s not likely to get them all.
Agent: Rickey Barnes
(660) 851-1152 or Rickey@BarnesRealty.com
Broker Participation: Barnes Realty Company, as listing broker, will gladly, and fully cooperate with most licensed real estate brokers to obtain a sale of the property on terms satisfactory to the current owners. Brokers should call the office for details of our co-brokerage policy.
- Location:
The farm is a combination of five individual, non-contiguous tracts. They are generally located in Northeastern Nodaway County, MO. See brochure for Location details. - FSA Information:
There is extensive FSA information on these tracts.
(See attached for details) - Improvements:
The farm is unimproved except for the tile lines, terraces, fences and gates. - Taxes/Taxable Acres:
2022 taxes were $3,287.90 on 1,047.66. taxable acres. - Mineral Rights:
The current owner is not retaining any mineral rights. - Rental Status/Cap Rate:
There is additional diversification on this farm because the tracts are rented to three separate farmers. All have been on the farms for more than two years and all are planning on staying. The total rent income including all the cash rents and all the hunting leases for 2022 totals $197,000.00 on 819 tillable acres, 22 acres of pasture, and 203 acres of timber. This makes for a capitalization rate of 2.9% currently. Next year, it is expected that rental rates will increase by at least 10% due to the current strong commodity prices and increasing demand for food in the world market. That increase will significantly increase the cap rate in the future. Assuming a 10% increase in total revenue, the cap rate will be 3.2%.