Farmland prices remain strong across the state of Iowa. However, the early-summer farmland market is different than it was 12 months ago. Notably, grain markets are weaker, and interest rates are higher.  Looking back, the Ukraine-Russia war had 2022 grain markets very unsettled and trending higher, and our export demand was strong.

Today, the war continues, but world markets are adjusting to the protracted conflict. In addition, during our recent winter season Brazil grew an enormous soybean and corn crop. This, in combination with our strong U.S. dollar, a large U.S. crop forecast, a generally slowing world economy and some worldwide geo-political tensions (especially with China), has weakened our export demand and positioning.

What does this mean for the rest of the summer and 2023? As I see it, we’re back to managing through the ups and downs of a “weather market,” and an increasing likelihood of profit margins really tightening up in 2023. Fortunately, Iowa farmers and farmland owners came into this growing season in as healthy of a financial position as any in recent history.

Know that today’s land market is stable. However, prospective land buyers are again sharpening their pencils, and they are increasingly cautious as they approach an acquisition.

As you can see in the sales noted below, this market-mindset shift does not mean the market is weak, but it is not as enthusiastic as this time a year ago:

Dickinson County. About 80 acres northeast of Terril recently sold at public auction for $13,800 per acre. The farm consisted of about 76 tillable acres with a CSR2 (corn suitability rating) of 84.6, and equaled $172 per CSR2 point on the tillable acres.

Floyd County. About 160 near Colwell recently sold for $13,590 per acre. The farm consisted of about 154 tillable acres with a CSR2 of 81.4, and equaled $173 per CSR2 point on the tillable acres.

Bremer County. About 59 acres south of Plainfield recently sold for $12,973 per acre. The farm consisted of about 59 tillable acres with a CSR2 of 87.7, and equaled $148 per CSR2 point on the tillable acres.

Harrison County. About 74 acres southeast of Dunlap recently sold at public auction for $15,500 per acre. The farm consisted of about 73 tillable acres with a CSR2 of 74.0, and equaled $212 per CSR2 point on the tillable acres.

Jasper County. About 124 acres southwest of Newton recently sold at public auction for $11,500 per acre. The farm consisted of about 122 tillable acres with a CSR2 of 74.1, and equaled $158 per CSR2 point on the tillable acres.

Linn County. About 40 acres southeast of Cedar Rapids recently sold for $14,500 per acre. The farm consisted of about 39 tillable acres with a CSR2 of 67.0, and equaled $222 per CSR2 point on the tillable acres.

Cass County. About 47 acres south of Atlantic recently sold at public auction for $10,400 per acre. The farm consisted of about 37 tillable acres with a CSR2 of 69.7, and equaled $189 per CSR2 point on the tillable acres.

Wayne County. About 49 acres east of Derby recently sold at public auction for $4,000 per acre. The farm consisted of about 33 tillable acres with a CSR2 of 53.3, and equaled $111 per CSR2 point on the tillable acres.

Keokuk County. About 118 acres west of North English recently sold at public auction for $10,800 per acre. The farm consisted of about 103 tillable acres with a CSR2 of 64.8, and equaled $191 per CSR2 point on the tillable acres.

Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. Call Hertz at 515-382-1500 or 800-593-5263, or visit hertz.ag.