As I’ve observed the Iowa farmland market in recent months, I continue to be impressed by its overall strength. Since Jan. 1, however, it has become clearer to me that the market is trading sideways; few sales have set a new high-water mark in the way we repeatedly experienced a year ago.

Land values here in Iowa in early ’23 have certainly been buoyed by the strong profits of 2022, but today, there are also offsetting headwind pressures — including higher input costs for the coming planting season, tighter profit margin forecasts, and an interest rate environment that continues to tick higher. None of the headwind factors is yet strong enough to turn the market lower. But higher input costs are real, and prospective buyers in today’s market are calculating hard and setting limits on their decisions.

I believe the sideways pattern for land values will hold until we really get into the growing season. Then, the market will again begin to make production judgments that will provide new direction to both the commodity and land markets. Remember — farmers buy seven out of 10 farms that get sold, so the collective of farmer decisions generally drives the land market. This was true in 2022, and I expect that pattern to again hold true in 2023.

Here are some recent sales:

Dickinson County. About 160 acres west of Milford, Iowa, recently sold at public auction for $14,900 per acre. The farm consisted of about 154 tillable acres with a CSR2 (corn suitability rating) of 85.3 and equaled $181 per CSR2 point on the tillable acres.

Winnebago County. About 53 acres northeast of Thompson, Iowa, recently sold at public auction for $11,125 per acre. The farm consisted of about 45 tillable acres with a CSR2 of 75.9 and equaled $172 per CSR2 point on the tillable acres.

Buchanan County. About 79 acres south of Monti, Iowa, recently sold at public auction for $15,200 per acre. The farm consisted of about 77 tillable acres with a CSR2 of 87.3, and equaled $178 per CSR2 point on the tillable acres. Note: This farm was very irregularly shaped.

Woodbury County. About 80 acres northeast of Anthon, Iowa, recently sold at public auction for $15,000 per acre. The farm consisted of about 76 tillable acres with a CSR2 of 74.3, and equaled $212 per CSR2 point on the tillable acres.

Hardin County. About 160 acres south of Ackley, Iowa, recently sold at public auction for $11,600 per acre. The farm consisted of about 145 tillable acres with a CSR2 of 84.2, and equaled $152 per CSR2 point on the tillable acres.

Cedar County. About 111 acres northeast of Tipton, Iowa, recently sold for $14,700 per acre. The farm consisted of about 109 tillable acres with a CSR2 of 84.5, and equaled $177 per CSR2 point on the tillable acres.

Mills County. About 207 acres north of Malvern, Iowa, recently sold at public auction for $12,600 per acre. The farm consisted of about 187 tillable acres with a CSR2 of 85.7, and equaled $163 per CSR2 point on the tillable acres.

Wayne County. About 155 acres southeast of Corydon, Iowa, recently sold at public auction for $7,100 per acre. The farm consisted of about 144 tillable acres with a CSR2 of 49.8, and equaled $153 per CSR2 point on the tillable acres.

Washington County. About 116 acres south of Washington, Iowa, recently sold at public auction for $17,220 per acre. The farm consisted of about 113 tillable acres with a CSR2 of 87.7, and equaled $201 per CSR2 point on the tillable acres. Note: The sale price mentioned here includes the 5% buyer’s premium that was added to the high sale bid.

Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. Call Hertz at 515-382-1500 or 800-593-526, or visit hertz.ag.