Spring has finally arrived, and with it, optimism for 2019. The Iowa farmland market so far in 2019 has held up its end of the bargain, with continued resilience and stability. Value differences exist from neighborhood to neighborhood and are most often influenced by level of crop production success (or struggle) in recent years.

High-quality farms continue to sell best. Above-average soil types, adequate to good drainage, easy farmability and well-managed fertility levels tend to be major value influences. Farmers are still buying the majority of farms offered, although nonfarming investors represent an important segment of buyers in most corners of the Iowa market.

Several value drivers will continue to influence land sales as the growing season approaches. First, early success or struggle of the 2019 growing season will play an important role in current and upcoming land sales.

Next, keep an eye on the level and direction of interest rates. Any meaningful increase in long-term rates in 2019 will add pressure to farmland values. Many analysts were expecting the Federal Reserve to again raise short-term rates at least twice in 2019, which would be a continuation of a pattern from the past two years (albeit at a slightly slower pace). However, these rate increases have been put into question with recent comments from several governors of the regional Fed banks, so stay tuned as interest rate policy continues to evolve.

Third, commodity markets are a major influencer in actual farm profitability, as well as the collective confidence and psyche of the Midwest land market. The results (or lack thereof) coming from global trade negotiations, particularly with China, will continue to impact commodity prices and underlying asset values, including farmland.

As we get into the growing season, keep an eye on both the level and direction of commodity prices. There are sure to be other market-driving factors to emerge in 2019, so stay tuned for further analysis as new information surfaces on these and other topics.

Northwest

Lyon County. Northwest of Rock Valley, 80 acres recently sold at public auction for $13,900 per acre. The farm has of 79 tillable acres with a 74.4 CSR2 and equals $189 per CSR2 point on the tillable acres. This farm has had cattle manure applied annually, along with lime being applied in fall 2017. Five-year APH is 209.4 for corn.

North Central

Mitchell County. Near New Haven, 73 acres sold at public auction for $7,200 per acre. The farm has 69 tillable acres, with a 69.4 CSR2, which equals $110 per CSR2 point on the tillable acres.

Northeast

Black Hawk County. East of Dunkerton, 66 acres sold at public auction for $5,100 per acre. The farm consists of 65 tillable acres, with a 65.3 CSR2. Of the 65 tillable acres, more than 20 acres are enrolled in CRP, making this farm a mixture of CRP and cropland. The sale equals $79 per CSR2 point on the tillable acres.

West Central

Sac County. Southwest of Wall Lake, 80 acres sold at public auction for $5,250 per acre. The farm has 63 tillable acres with a 65.8 CSR2, and the balance of the land is pasture. The sale equals $101 per CSR2 point on the tillable acres.

Central

Poweshiek County. East of Montezuma, 80 acres sold at public auction for $11,300 per acre, with 81 tillable acres and an 82.2 CSR2. The sale equals $136 per CSR2 point on the tillable acres.

East Central

Cedar County. Near Tipton, 40 acres sold for $11,500 per acre. The farm consists of 39 tillable acres, with a 93.8 CSR2. The sale equals $125 per CSR2 point on the tillable acres.

Southwest

Fremont County. West of Shenandoah, 154 acres sold at public auction for $6,700 per acre. The farm has 142 tillable acres, with a 75.9 CSR2. The sale includes three grain bins and a machine shed, and the farm is under lease for the 2019 crop year, with the buyer receiving the landlord’s share of the 2019 income. The sale equals $96 per CSR2 point on the tillable acres.

South Central

Monroe County. North of Melrose,77 acres sold for $3,160 per acre. The farm has 64 tillable acres and a 48.5 CSR2, with the balance of land being in timber and draws. The sale equals $78 per CSR2 point on the tillable acres.

Southeast

Keokuk County. North of Keota, 80 acres sold at public auction for $12,700 per acre. The farm has 79 tillable acres and an 86.6 CSR2. The sale equals $149 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.