The Iowa farmland market continues to move sideways. This is a pause from the downward trend that started in spring 2013. The strongest values continue to be for high-quality farms (excellent soils, productivity and drainage), as well as for farms adjacent to strong farmland owners.
An increase in interest has been observed by nonfarming landowners and investment buyers. The stabilization in farmland market prices and the increase in interest from investors are 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 beginning to increase, and commodity prices easing down from earlier this year. Interest rates have increased nearly 1% since last fall. For owners concerned about land values dropping, it may be time to consider selling.
Sioux County: North of Newkirk, 120.76 acres sold at public auction for $15,000 per acre. The farm has 117 tillable acres and a 96.5 CSR2. Primary soil types are Galva, Primghar, Marcus, Afton, Colo and Calco. Corn PLC yield is 186, and soybean yield is 55. The nearly level to gently rolling farm sold with full possession, and buyer reimbursed previous tenant for last fall’s manure and application cost. Fall tillage was included in the sale price.
Cerro Gordo County: Southwest of Rockwell, 138.9 acres sold in two parcels. Parcel 1 is 58.9 acres with 56.8 crop acres and an 83.3 CSR2. It sold for $7,300 per acre, or $91 per CSR2 per crop acre. Parcel 2 is 80 acres with 78.4 crop acres, and a 75 CSR2. It sold for $7,050 per acre, or $96 per CSR2 per crop acre.
Delaware County: Northeast of Ryan, 167 acres sold in two parcels. The 117-acre parcel sold for $9,500 per acre. It has 109.8 tillable acres with an 84.3 CSR2. The 50-acre parcel sold for $11,000 per acre. It has 47.7 tillable acres with an 88.2 CSR2. Seller is a family, and buyers are neighboring farmers.
Carroll County: Northwest of Carroll, 188 acres sold for $8,950 per acre. The farm has a wind turbine and 186.87 crop acres with a 65.6 CSR2. Sale equates to $137 per CSR2 per crop acre.
Grundy County: East of Dike, 149.22 acres sold for $10,600 per acre. It has 149.14 crop acres, with an 85.9 CSR2. Seller is a local farmer; buyer is an investor.
Muscatine County: Southwest of Milton, 50 acres sold for $10,000 per acre. The arm has 49.8 crop acres, with a 90.1 CSR2. Buyer and seller are investors.
Cass County: Southeast of Atlantic, 102.59 acres sold for $8,400 per acre. It has 97.3 crop acres, with an 80 CSR2. This equates to $111.75 per CSR2 per crop acre.
Madison County: Southwest of Earlham, 107.2 acres sold at public auction for $8,950 per gross acre. It has 88.27 tillable acres and a 77.1 CSR2. It has 10.4 CRP acres, paying $1,726 per year. The balance of acres is in a treed waterway.
Jefferson County: North of Fairfield, 40 acres sold at public auction for $6,100 per acre. It has 32.58 tillable acres and a 66.9 CSR2. Remainder of the farm is timber.
Hertz Real Estate Services compiled this list, but did not handle all sales. Call Hertz at 515-382-1500 or visit hertz.ag.