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Serving: IA
land with a for sale sign
WHAT’S AHEAD? Farmland values in most areas can be expected to continue to gradually decline over the next several years if crop prices and farm income remain at current low levels.

Land market still holding steady

Stabilization in farmland prices is due largely to increased interest from investors searching for a solid investment.

The Iowa farmland market continues to move sideways. This is a change in direction from the downward trend that started in spring 2013. The strongest values within the market continue to be for high-quality farms (those with excellent soils, productivity and drainage), as well as for farms adjacent to strong farmland owners.

Sales activity has declined slightly each year for the past five years. Landowners and investors have shown the most interest in purchasing land. An increase in interest has been observed in nonfarming landowners. The stabilization in farmland market prices and an increase in interest from investors are in reaction to a search for solid investments, low-interest rates and a general belief that farmland is a tangible asset and sound investment.

These positive factors are countered by interest rates that are beginning to increase and commodity prices that have eased down from earlier this year. For owners concerned about farmland values dropping, it may be time to consider selling.

NORTHWEST

Dickinson County: Southeast of Lake Park, 150 acres sold at public auction for $6,900 per acre. The farm has 144.81 tillable acres and a 78.5 CSR2. Primary soil types are Webster, Clarion-Storden, Clarion, Okoboji, Nicollet, Omsrud-Storden and Crippin. Corn PLC yield was 144 bushels, and soybean yield was 44 bushels. The gently rolling farm was sold with a lease, and buyer received one-half the 2017 cash rent.

NORTH CENTRAL

Hancock County: At public auction, 76 acres sold to the adjoining landowner for $9,500 per acre. The farm has 72.4 crop acres and an 83.8 CSR2.

NORTHEAST

Fayette County: Northeast of Oelwein, 61.08 acres sold for $8,186 per acre. Farm has 58.08 crop acres and an 82.8 CSR2. Seller is a local farmer; buyer is a local investor.

WEST CENTRAL

Carroll County: Northeast of Manning, 80 acres sold for $12,800 per acre. The farm has 75.12 crop acres and an 80.3 CSR2. Sale equates to $170 per CSR2 point per crop acre.

CENTRAL

Hardin County: South of Ackley, 80 acres sold for $10,500 per acre. The farm has 68.82 crop acres with a 92.4 CSR2. The sale equals $132 per CSR2 point per crop acre.

EAST CENTRAL

Benton County: East of Urbana, 40 acres sold for $7,350 per acre. The farm has 38.6 gently rolling crop acres with a 75.5 CSR2. Buyer is an investor completing a 1031 exchange, and the seller was a farmer.

SOUTHWEST

Cass County: Northwest of Atlantic, 76.26 acres sold for $6,557 per acre. The farm has 69.01 crop acres with a CSR2 of 80. This equates to $90.10 per CSR2 point per crop acre.

SOUTH CENTRAL

Lucas County: Northeast of Derby, 80 acres sold at public auction for $4,900 per acre. The farm has 77.8 tillable acres and a 53.4 CSR2.

SOUTHEAST

Jefferson County: Northeast of Burlington, 76.64 acres sold at public auction for $6,300 per acre. The farm has 73.18 tillable acres and an 81.7 CSR2. Seller was an estate.

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

 

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