2007 Land Sales

Wednesday, March 28, 2007
Contributed by: Alan Rhodes

Over the last six months, we've seen a very interesting series of transactions involving farm land in the Texas Panhandle. Perhaps the number of purchases and sales comes from the continued development of our agriculture practice.

Our view is that most of the transactions in which we've been involved come from dairy farmers' desires to control their feed sources and to be in a good position to confirm their feed costs. The driving force behind the dairy farmers' movement is the market pressures that follow $4.50 corn prices.

Some transactions, although it seems to be a smaller number, are based on potential dairy locations. For a reader who is considering a speculative permit, we'd urge you to move forward cautiously. Speaking from personal and professional experience, it will likely be some time before you recover your costs that are associated with a speculative permit. We note that property values are enhanced when a speculative permit results in a sale.

A third reason for the large number of transactions comes from grain prices. Tom Gergens, an Amarillo appraiser, believes that the increased prices for farm land are a direct result of grain prices.

Lynn Tate and I have enjoyed the good fortune of facilitating several sales. If we can assist you, either as a prospective seller or prospective buyer, contact us at Lynn.Tate@uwlaw.com or Alan.Rhodes@uwlaw.com.

This column is published for informational purposes only. It should not be construed as legal advice and is not intended to create an attorney client relationship. The views expressed are those of the author and do not necessarily reflect the views of the author's law firm or its individual partners.