Nineteen-year-old Cody Staudt may be too young to legally gamble or drink alcohol, but this ambitious Iowa State University undergraduate didn’t let his youth stop him from a smart investment opportunity.
That investing came to the tune of $1.13 million for 80 acres of farmland near Rockwell, Iowa.
“It’s a good investment,” Staudt said.
According to a report by the Mason City Globe Gazette, Staudt was one of nearly 100 people who turned out to bid on the northern Iowa farm. The farm sold for more than $14,000 per acre, and for Staudt, who had previously rented farmland while completing his ag studies, the cost is on-par with his expectations.
“It’s a good piece of land,” said Cody Staudt, who purchased the farm located northeast of Rockwell. “It brought what I thought it would.
Farmland values in Iowa and across the country have jumped significantly over the past several years. Recently, a farm in Illinois sold for $15,000 per acre, and similar results have been reported in other ag states.
The Federal Reserve Bank of Chicago reports that “farmland values in Iowa and parts of Indiana, Michigan, Wisconsin and Illinois were up 16 percent since early 2012, the third largest increase since the late 1970s.”Click here to read more.
Farmland values in the nation’s midsection are used by federal economists as a gauge for farm economy and to determine the health of the banking system. But are they a good investment?
Michael Duffy, Iowa State University Extension economist, recently wrote an article to provide his latest analysis of which is a better investment -- the stock market or farmland.
“Land’s performance relative to the stock market over the past few years has been spectacular,” Duffy wrote. “Will this trend continue? Time will tell. Which is the better investment? As the old saying goes, timing is everything in the success of a rain dance.”