Iowa Land Investment Expo—a Most Excellent Event

The first Iowa Land Investment Expo was held in West Des Moines, Iowa, last Friday, February 15, 2008, at the West Des Moines Marriott. The event brought together a diverse group of investors, farmers, exhibitors and others.

The day started off with a discussion between Don DeWaay of DeWaay Capital Management and Moe Russell of Russell Consulting Group on the future of land prices. Both were essentially bullish on the prospects of continued escalation in the value of agricultural land, although both felt that any increases will be muted somewhat in comparison with the past couple of years. Mr. DeWaay was slightly more cautious than Mr. Russell, in my opinion. He noted that there is bound to be a top somewhere. Mr. Russell pointed out that each situation must be considered on its own merits. There are good deals out there, and there are deals that the buyer should steer clear of.

As an exhibitor, I was there to meet people and establish relationships, so I was not able to attend a lot of the events. There were plenty of people milling about during the morning breakout sessions, so I manned my table throughout that time period.

Lunchtime arrived, and with it a nice meal of lasagna. (By the way, the food itself at this event was worth the $35.00 entrance fee. A nice breakfast was available, then lunch, then an afternoon cookie, followed by two drinks during the cocktail hour, at which excellent hors d’oeuvres were served. Throughout the day, water and pop were readily available. What a deal!)  Ken Root (of WHO radio, the long-time blowtorch of the Midwest when it comes to farm radio) was the master of ceremonies throughout the day, and I use the term “master” in its truest sense. He kept the program on time and on point, and did it deftly and with expertise. I particularly appreciated something that happened at lunch. Outside of church and perhaps family gatherings, when is the last time you heard a prayer before a meal? Ken Root, master of ceremonies, gave praise for a great nation and its hardworking people to a silent room of 350-400 attendees, all of whom added “Amen” together at the end. I was moved.

At the lunch gathering, several speakers gave presentations. Mark Reisinger from USDA Rural Development essentially ceded his time to a last-minute special guest, Tom Dorr, Under Secretary at the U.S. Department of Agricultural Rural Development. Unfortunately, I missed most of that presentation and the one that followed, Wendy Gady of Pohaku. I made it a point to be there for Elizabeth Williams’s comments on the farm bill, which I will address in a separate post.

I did make it to one of the afternoon breakout sessions. “Estate Planning Discussion,” was run by David Albrecht and Chad Stevens, both from City State Bank, two new friends made at the expo, and Scott Simpson, attorney with Dreher, Simpson and Jensen, P.C., an old friend. This was an excellent discussion on entities, trusts, succession planning, and so forth.

The final group session dealt with a little more crystal-ball-gazing about land values. Discussions were held about world grain supplies and their impact on land values in the Midwest. With China and India’s peoples moving more and more toward middle-class lifestyles, the continued strain on land for more and more production bodes well for sustaining and increasing value of that land. Mike Walsten of LandOwner Newsletter (another new friend from this event) gave a great overview of recent land sales in the Midwest (including a sale in northwest Iowa of agricultural land for almost $9,000 per acre). If you are interested in monitoring land values, Mike publishes a fantastic newsletter that comes out twice per month at the bargain basement price of $119.00 per year. You can contact him at mwalsten@profarmer.com. Mike Duffy, the venerable gentleman Professor of Economics at Iowa State University, rounded out the day with some brief comments, most of which were again bullish on the future of land values. 

All in all, this was one fantastic event. It was wonderful to be a small part of it as an exhibitor. I met lots of great folks there and can hardly wait until the next one. Salutations to Peoples Company and Steve Bruere for organizing this day!

Ken Tharp

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Copyright © 2008 By Ken Tharp, All Rights Reserved. * Iowa Land Investment Expo—a Most Excellent Event * Contact Ken Tharp for information on Section 1031 tax-deferred exchanges anywhere in the United States.