Although land value differences exist across various locations throughout the state, the Iowa farmland market continues to show somewhat surprising resiliency and stability.

These differences are most pronounced in areas with either strong or weak crop yields have occurred. Regardless of the area, high-quality farms continue to sell best. These better-quality farms often feature above-average soils, good drainage, easy farmability and well-managed fertility. Farmers continue to pursue opportunities to buy land when it makes sense for their farming business. Likewise, nonfarming investors remain active in the Iowa market.

As we approach the 2019 crop year, several issues will remain an important influence in the marketplace.

1. The success (or lack thereof) of crop production in recent years plays an important role in current land sales. Typically, the more bushels grown in an area, the more competitive most land sales in that area prove to be.

2. Keep an eye on interest rates. Any meaningful increase in long-term rates during 2019 will add pressure to farmland values. The Federal Reserve again raised short-term rates at its December meeting, which followed a consistent pattern of bumping short-term rates over the past two to three years. While short-term rates don’t directly impact long-term borrowing costs, short-term rates directly impact farm operating notes, which increases the cost structure for current farm operations.

3. Commodity markets continue to be disrupted by the enactment of the global trade tariffs that have softened U.S. grain markets. If the U.S. and China can settle some differences before a self-imposed March deadline, the grain markets are likely to react positively. And if not, it is possible that the failure to do so will add bearish pressure to an already shaky grain complex. How global trade negotiations play out in the weeks and months ahead will continue to impact commodity prices, market confidence and underlying asset values, including farmland.

4. The reset in crop insurance price levels for 2019 production will be important in the coming months, as will the implementation of the new farm bill.  The recently passed legislation maintains similar USDA farm program support that Midwestern farm operations enjoyed in 2018, with even a bit more flexibility for coming years. Stay tuned for further analysis as new information surfaces on all these topics.

NORTHWEST

Pocahontas County: Southwest of Pocahontas, 70 acres recently sold at public auction for $8,675 per acre. The farm consists of 66 tillable acres with an 84.2 CSR2 and equals $109 per CSR2 point on the tillable acres.

NORTH CENTRAL

Cerro Gordo County: South of Mason City, 155 acres sold at a sealed bid auction for $10,000 per acre. The farm has of 152 tillable acres with an 89.1 CSR2 and equals $114 per CSR2 point on the tillable acres.

NORTHEAST

Black Hawk County: East of Waterloo, 154 acres sold privately for $8,930 per acre with 149 tillable acres and an 88 CSR2, the sale equals $105 per CSR2 point on the tillable acres.

WEST CENTRAL

Ida County: Northwest of Battle Creek, 119 acres sold at public auction for $7,200 per acre. The farm consists of 115 tillable acres with a 62.3 CSR2 which is $120 per CSR2 point on the tillable acres.

CENTRAL

Poweshiek County: Southeast of Grinnell,160 acres sold for $9,350 per acre at public auction. With 155 tillable acres and an 82.3 CSR2, the sale equals $117 per CSR2 point on the tillable acres.

EAST CENTRAL

Benton County: North of Keystone, 155 acres sold for $9,200 per acre. This farm has of 147 tillable acres and an 87.6 CSR2. The sale equals $110 per CSR2 point on the tillable acres. This land also includes a small grain bin.

SOUTHWEST

Mills County: South of Emerson, 116 acres sold at public auction for $6,250 per acre. With 112 tillable acres and a CSR2 of 72.4, the sale equals $89 per CSR2 point on the tillable acres.

SOUTH CENTRAL

Monroe County: North of Albia, 77 acres sold at public auction for $6,800 per acre. The farm has 73 tillable acres with an 84.3 CSR2, which equals $86 per CSR2 point on the tillable acres.

SOUTHEAST

Wapello County: Southeast of Hedrick, 76 acres sold at public auction for $7,300 per acre. With 71 tillable acres and a 78.1 CSR, this sale equals $100 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 /800-593-5263 or visit hertz.ag.