March 23, 2017
This winter, the Iowa farmland market turned sideways with a slight uptick — a welcome change from a downward trend that started in spring of 2013. The strongest values continue to be for high-quality farms (excellent soils and drainage), as well as for farms located adjacent to strong farmland owners.
Iowa farms harvested record-high corn and soybean yields last fall. The high yields and surprisingly strong commodity prices, plus Agricultural Risk Coverage-County farm program payments, have helped buffer lower commodity prices.
Farmland sales activity (number of farms for sale and sold) has declined slightly each year for the past five years. Owners and investors have reported an increase in purchasing interest, particularly from nonfarming landowners and investment buyers. This is in reaction to a search for solid investments, low interest rates and a general belief that land is a tangible asset and sound investment.
These positive factors are countered by interest rates that are beginning to increase. Borrowing interest rates have increased by about 1%. For owners concerned about farmland values dropping, it may be a good time to consider selling.
Lyon County: South of Rock Rapids, 137.26 acres in two parcels sold at public auction. First, 67.72 acres with 65.56 tillable acres and a CSR2 of 72.8 sold for $12,600 per acre. The second parcel of 69.54 acres with 65.49 tillable acres and a CSR2 of 73.2 sold for $12,900 per acre. Both farms have primary soil types of Moody, Egan, Trent, Marcus and Calco. Corn PLC yield is 167, and soybean yield is 46.
Cerro Gordo County: Southwest of Rockwell, 138.9 acres sold at public auction in two parcels. The first parcel has 58.9 acres, with 56.8 tillable acres and an 83.3 CSR2. It sold for $7,300 per acre, or $91 per CSR2 point per tillable acre. The second parcel has 80 acres, with 78.4 tillable acres and a CSR2 of 75. It sold for $7,050 per acre, or $96 per CSR2 point per tillable acre.
Chickasaw County: Southwest of Waucoma, 199 acres sold at public auction. The farm has 125.98 tillable acres with a CSR2 of 65.3, and sold for $3,450 per acre. Seller was an estate; buyer was a local farmer.
Harrison County: South of Little Sioux, 244.02 acres sold in two parcels. Parcel 1 has 126.62 acres, with 122.74 crop acres and an 81.2 CSR2. It sold for $8,350 per acre, or $106 per CSR2 point per tillable acre. Parcel 2 has 117.4 acres, with 108.65 crop acres and a 56.7 CSR2. It sold for $6,450 per acre, or $123 per CSR2 point per tillable acre.
Jasper County: In Des Moines Township, 109 acres sold for $3,700 per acre. The farm has 67 crop acres with a CSR2 of 46.9 and equates to a sale of $137 per CSR2 point per tillable acre.
Linn County: North of Palo, 36 acres sold for $298,000, or $8,278 per acre. The farm has 33.5 crop acres with an 87.3 CSR2. The farm is gently rolling with nice eye appeal. Buyer is a local farmer.
Pottawattamie County: North of Carson, 104.01 acres sold for $6,900 per acre. The farm has 100.48 crop acres with a 73.7 CSR2. This equates to $96.91 per CSR2 point per tillable acre.
Clarke County: Northwest of Osceola, 144.8 acres sold for $2,470 per gross acre. The farm has a CSR2 of 27 with 60 acres open pasture and 83 acres of timber pasture.
Jefferson County: South of Packwood, 66.9 acres sold at public auction for $430,000, or $6,427.50 per acre. The farm has 57.85 acres of cropland, 7.9 acres in CRP and an 88.3 CSR2. Located on a hard surface road, the farm was purchased by a local farmer.
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.
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