Wallaces Farmer

3 reasons why the Iowa farmland market is bouncing back3 reasons why the Iowa farmland market is bouncing back

Direct emergency payments, strong exports and a mid-January USDA crop report surprise have helped renew optimism in Iowa land values.

Doug Hensley

January 22, 2025

3 Min Read
soybean plants
FARMLAND BOUNCEBACK: Federal payments, strong exports and a favorable January USDA report has fueled firmer farmland prices. Gil Gullickson

As has been well documented over the past year, the Iowa farmland market has weakened compared with 18 months ago. In some areas throughout late 2024, we saw land sales that were 5% to 15% lower than what they would have been in mid- to late 2023. The main culprits were lower grain prices, still expensive input prices and higher interest rates. There’s no doubt that farming operations eroded some amount of working capital in 2024.

However, in early 2025, several market shifts in the agricultural economy suggest a renewed sense of optimism. These developments include:

  • a late 2024 federal government spending bill that has meaningful and unexpected direct emergency payments headed to bank accounts before spring

  • strong export business that has boosted the corn market (in particular)

  • a mid-January USDA report that cut last year’s overall corn and soybean production totals that subsequently shot prices for both higher.

The combination of these movements is encouraging and appears to have firmed the land market, at least for now. I believe the sales below reflect that firming effect in most corners of Iowa.

Land sales map

Sioux County. Located south of Sioux Center, 77 +/- acres recently sold at public auction for $15,550 per acre. The farm consisted of 76 +/- tillable acres with a Corn Suitability Rating index of 84.5 and equaled $186 per CSR2 point on the tillable acres.

Related:How Fractal Agriculture assesses farmland value

Hancock County. Located south of Garner, 87 +/- acres recently sold at public auction for $16,000 per acre. The farm consisted of 84 +/- tillable acres with a CSR2 of 86.3 and equaled $192 per CSR2 point on the tillable acres.

Bremer County. Located southeast of Denver, 74 +/- acres recently sold at public auction for $13,000 per acre. The farm consisted of 70 +/- tillable acres with a CSR2 of 87.3 and equaled $158 per CSR2 point on the tillable acres. Note: This farm was very irregularly shaped.

Ida County. Located southwest of Holstein, 160 +/- acres recently sold at public auction for $16,750 per acre. The farm consisted of 154 +/- tillable acres with a CSR2 of 83.1 and equaled $209 per CSR2 point on the tillable acres.

Dallas County. Located northeast of Redfield, 142 +/- acres recently sold for $10,900 per acre. The farm consisted of 131 +/- tillable acres with a CSR2 of 79.1 and equaled $149 per CSR2 point on the tillable acres. Note: This farm was very irregularly shaped and featured mostly HEL cropland acres.

Linn County. Located northwest of Cedar Rapids, 180 +/- acres recently sold for $14,370 per acre. The farm consisted of 162 +/- tillable acres with a CSR2 of 88.4 and equaled $180 per CSR2 point on the tillable acres.

Related:How to create a successful landlord-farmer team

Mills County. Located west of Henderson, 294 +/- acres recently sold at public auction for $11,200 per acre. The farm consisted of 260 +/- tillable acres with a CSR2 of 72.5 and equaled $174 per CSR2 point on the tillable acres. Note: This farm featured significant terraces, along with a small amount of timbered waterway draws.

Decatur County. Located east of Van Wert, 216 +/- acres recently sold at public auction for $10,600 per acre. The farm consisted of 207 +/- tillable acres with a CSR2 of 63.1 and equaled $175 per CSR2 point on the tillable acres.

Des Moines County. Located north of Yarmouth, 74 +/- acres recently sold at public auction for $12,100 per acre. The farm consisted of 72 +/- tillable acres with a CSR2 of 86.0 and equaled $144 per CSR2 point on the tillable acres.

Hertz Real Estate Services compiled this list but did not handle all sales. Call Hertz at 800-593-5263 or visit hertz.ag.

About the Author

Doug Hensley

Hertz Real Estate Services

Hensley is president of Hertz Real Estate Services. The Hertz Farm Management Co. was started in 1946, and now provides a full spectrum of services that includes professional farm management, real estate sales, auctions, acquisitions and farm appraisals.

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like