The Magazine of the American Landowner is an essential guide for investors, landowners, and those interested in buying or selling land. The award-winning quarterly is known for its annual survey of America's largest landowners, The Land Report 100.
Issue link: https://landreport.epubxp.com/i/738657
A couple of months later, Steve and I struck a deal for me to sign on with Peoples. It's been a perfect fit. On the one hand, I'm sharing the message of American agriculture with millions of con- sumers via social media and at promotional appearances around the country. And now, with Peoples Company, I'm able to help investors find the right deal with a product that I've devoted my entire life to. That's right: my entire life. When I was 7, Dad would hop up in a tractor and put me in his lap. My feet were too short to reach the clutch or the brake, so the steering wheel was my job. In the years that followed, Dad not only taught me how to run every piece of machinery on our farm, but he also made sure I understood the basics of buying and sell- ing farmland. Not many high school kids know that you make your money on the buy side, not the sell side. Or that the best investment is land no one else wants. But I did. Buy right and you can add more value less expensively. Today, if I can't make a 10 percent profit on a piece of Iowa farmland the day after we close, I know I didn't buy it right. And those skills are going to be put to the test — soon. The current market capitalization of Iowa cropland is well over $200 billion. That's a big number, right? Actually, the more important number is the percentage of that cropland that is about to change hands over the next decade: more than 50 percent. That's well over $100 billion of some of the world's best dirt. Thirty percent of Iowa cropland owners are 75 or older, and another 26 percent are in the 65–74 age bracket. A lot of this land will go into trusts. Some will be given or willed or sold to a relative. But according to the USDA, a significant percentage of the farms I just mentioned will be sold to nonrelatives, and that's where the opportunity lies. Over the next decade, there's going to be a gold rush in the Hawkeye State, and my family is already in the middle of it. Over the past two decades, my parents and I have grown our farm from 1,500 acres to more than 5,500 acres. We've also expanded our hog facilities to four buildings. And I promise you there's still a lot of opportunity to grow. I call that putting your money where America's mouth is. Another thing I bring to the table are the contacts I've made in the entertainment industry and pro sports. These guys have no idea about the returns farmland can generate. For that matter, neither do most Americans. Dad and I certainly do. More than a decade ago, we spent a considerable amount of time and money developing a farming operation in the Ukraine. The rich, black soil was unbelievable: five feet deep. But the country was communist in everything but name. No one had any work ethic, and everyone drank too much vodka. Infrastructure? None at all. I'm talking about the basics – things like electricity and irrigation. Farm equipment was so scarce over there that we shipped our own tractors from Iowa. So we took our oldest Massey Ferguson 750s — well-maintained combines that we had used forever — broke them down, crated them up, and freighted them all the way to the Ukraine, where we had them reassembled. Although I was only in my twenties, I learned a valuable lesson: There's no better place to farm than in America. We've got so much great land, top-notch researchers, excellent infrastructure, and the world's best export system. We all have our beefs about Washing- ton — this is an election year, right? — but I can assure you that our government provides a level of stability that is second to none. That's why I'm so optimistic about investing in land. Have been all my life. 56 The LandReport | FA L L 2 0 1 6 LANDREPORT.COM WHITE OAK RANCH & VINEYARD www.californiaoutdoorproperties.com More than half of this 255-acre California wine country estate is planted in Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc, and other varietals. BONSALL FARM www.rmabrokers.com This exceptional California citrus farm sits a short drive from San Diego between Carlsbad and Fallbrook. The numerous improvements are in tiptop shape. HERSTON CATTLE & HAY FARM www.ranchland.com Two seven-tower pivots water this 120-acre Northern Colorado farming operation, which runs 100 head of registered Angus and produces 500 square bales a year. RIGHT: When I tell you farming is in my blood, I mean it. That's my grandfather, Warren Soules, on the left, and his brother Richard on our family farm. OPPOSITE: I love being an advocate for farming. Can you tell? A