Welcome to a new year. Perhaps as much as any recent year, the beginning of 2021 should be filled with hope and optimism for improvement, as 2020 was a difficult year in so many respects. COVID-19 concerns, with the various related issues and conflicts, top the list of 2020’s difficulties. As we turn the calendar, however, I am encouraged with more positive news on COVID-19 medical treatments and vaccine rollouts.

I am also encouraged by the way the Midwestern farmland markets ended in 2020. While most worldwide financial markets endured an incredible roller-coaster ride in 2020, the U.S. farmland markets stayed true to their stable reputation. The crop was planted, tended to and harvested amid the pandemic, and demand for additional farmland rental opportunities coming into 2021 held as strong as ever following fall harvest.

Similarly, the land market experienced a legitimate show of strength beginning in September and continued through December sales. With all the disruption experienced throughout our society in 2020, this left many farmland market watchers and participants wondering how and why the land market appeared so strong, especially when instability seemed to reign everywhere else?

The answer to the question above is rooted in an alignment of both supply-and-demand factors. Specifically, from the supply side, there have been few farms publicly available to purchase, at least compared to historical standards. So, when a farm comes to the market, there are often many formidable competitors that can purchase it.

From the demand side, in the fourth quarter of 2020, commodity prices rallied to their strongest levels in several years, which brightened the farm income outlook. Likewise, interest rates remain at generationally low levels, which makes it more affordable to borrow money to do just about anything, including buying a farm. And don’t forget the continued government support that was offered to agriculture in 2020 (e.g., CFAP 1, CFAP 2).

Having said that, keep in mind, as I always say, that the market is very smart — and if the tide turns on one or more of these factors, the market can and will adjust. So, keep an eye on these market-driving factors. But for now, know that the alignment that occurred in late 2020 across the Iowa land market has been real, and has had a meaningful, market-moving impact throughout this and other row-crop producing states. The sales below from all across Iowa are a testament to this reality.

Northwest

Sioux County. Located northeast of Boyden, 79 acres sold at public auction for $15,600 per acre. The farm consisted of 78 tillable acres with a CSR2 of 98.1, and equaled $161 per CSR2 point on the tillable acres.

North central

Cerro Gordo County. Located near Thornton, 80 acres recently sold at public auction for $8,700 per acre. The farm consisted of 77 tillable acres with a CSR2 of 81, and equaled $112 per CSR2 point on the tillable acres.

Northeast

Clayton County. Located southeast of Strawberry Point, 61 acres recently sold for $9,000 per acre. The farm consisted of 57 tillable acres with a CSR2 of 88.1, and equaled $109 per CSR2 point on the tillable acres.

West central

Sac County. Located north of Wall Lake, 84 acres recently sold at public auction for $9,000 per acre. The farm consisted of 79 tillable acres with a CSR2 of 66.1, and equaled $145 per CSR2 point on the tillable acres.

Central

Poweshiek County. Located northeast of Grinnell, 80 acres recently sold at public auction for $7,700 per acre. The farm consisted of 76 tillable acres with a CSR2 of 81.9, and equaled $99 per CSR2 point on the tillable acres. Note: This land was classified as HEL and featured several grass waterways.

East central

Clinton County. Located west of Dewitt, 150 acres recently sold for $7,600 per acre. The farm consisted of 134 tillable acres with a CSR2 of 67.2, and equaled $127 per CSR2 point on the tillable acres. Note: This land featured several non-tillable acres in the form of a creek and several grass waterways.

Southwest

Mills County. Located northwest of Glenwood, 88 acres recently sold for $5,075 per acre. The farm consisted of 88 tillable acres with a CSR2 of 55.4, and equaled $92 per CSR2 point on the tillable acres.

South central

Marion County. Located north of Attica, 80 acres recently sold at public auction for $5,200 per acre. The farm consisted of 68 tillable acres with a CSR2 of 70.3, and equaled $87 per CSR2 point on the tillable acres. This land featured several non-tillable acres in the form of terraces, waterways, timber and a small pond.

Southeast

Henry and Lee counties. Located south of Mount Pleasant, 158 acres recently sold at public auction for $8,000 per acre. The farm consisted of 156 tillable acres, with a CSR2 of 70.7, and equaled $115 per CSR2 point on the tillable acres.

Hensley is president of Hertz Real Estate Services, which 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.