Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: IA

Iowa farmland market remains strong

Jennifer Carrico 0919m2-1770A-1540x800.jpg
As fall begins and farmers start harvest, high-quality farmland continues to sell strong, though there could be lower prices for lower-quality ground.

As we enter a very busy stretch for the 2022 fall harvest season, the farmland market across the state of Iowa remains strong. That said, it also appears the farmland bull market is starting to “mature,” with the top end of the market leveling out, while the second and third tiers of land quality are showing an uneven consistency, dependent on the specific neighborhood. This push-pull type of market behavior is expected. 

Land buyers generally pursue the best farms with more enthusiasm than farms that have flaws; and when market conditions change, it shows up in farmland sales. And we’ve seen changing market conditions in 2022 when compared to 2021. Early in 2022, the war in Ukraine and resulting geopolitical instability pumped grain prices higher, thus supporting the land market. Then, during the midsummer months, we saw commodity prices soften and interest rates begin to increase, causing concern from some land buyers at sales in July and August. More recently, however, we’ve seen strength return to the grain markets, and higher corn and soybean prices going into harvest are again providing renewed support to the land market.

As we approach the fall land sales season, know that land-sale results across the region will likely show some variation. It will be common to see similar-quality farms, but in different areas, sell at different levels — maybe even a few thousand dollars per acre more or less for similar CSR2-rated soils (CSR2 is a corn suitability rating). This is because there are marked differences in generational wealth, and landowner aggressiveness, from area to area. Plus, more practically, some areas are going to grow a near-record crop, while others will be lucky to hit 10-year APHs (actual production history), and these local production realities will affect the appetites of prospective buyers in different neighborhoods. So, keep your eyes and ears open for reports on how things are going in the area most important to you, as they may provide clues to just how aggressive buyers may be for land sales in that specific area. As the sales below can attest, the possible range of sale prices in today’s land market is very large.

NORTHWEST
O’Brien County.
About 160 acres south of Sanborn recently sold at public auction for $23,500 per acre. The farm consisted of about 154 tillable acres with a CSR2 of 95.7, and equaled $255 per CSR2 point on the tillable acres.

NORTH CENTRAL
Floyd County.
About 80 acres near Nashua recently sold at public auction for $7,800 per acre. The farm consisted of about 58 tillable acres with a CSR2 of 88.6, and equaled $121 per CSR2 point on the tillable acres.

NORTHEAST
Bremer County.
About 39 east of Frederika recently sold at public auction for $13,250 per acre. The farm consisted of about 35 tillable acres with a CSR2 of 80.9, and equaled $182 per CSR2 point on the tillable acres.

WEST CENTRAL
Carroll County.
About 131 acres north of Glidden recently sold at public auction for $13,600 per acre. The farm consisted of about 131 tillable acres with a CSR2 of 82.9, and equaled $164 per CSR2 point on the tillable acres.

CENTRAL
Jasper County.
About 186 acres south of Mitchellville recently sold at public auction for $17,800 per acre. The farm consisted of about 184 tillable acres with a CSR2 of 90.7, and equaled $198 per CSR2 point on the tillable acres.

EAST CENTRAL
Benton County.
About 76 acres north of Keystone recently sold at public auction for $20,500 per acre. The farm consisted of about 75 tillable acres with a CSR2 of 93.1, and equaled $223 per CSR2 point on the tillable acres.

SOUTHWEST
Adams County.
About 156 acres north of Prescott recently sold at public auction for $9,000 per acre. The farm consisted of about 143 tillable acres with a CSR2 of 71.7, and equaled $137 per CSR2 point on the tillable acres. Note: This farm included several terraces and waterways.

SOUTH CENTRAL
Appanoose County.
About 40 acres southeast of Seymour recently sold at public auction for $11,100 per acre. The farm consisted of about 39 tillable acres with a CSR2 of 56.0, and equaled $203 per CSR2 point on the tillable acres.

SOUTHEAST
Keokuk County:
About 79 acres northwest of Wellman recently sold at public auction for $10,000 per acre. The farm consisted of about 69 tillable acres with a CSR2 of 66.7, and equaled $171 per CSR2 point on the tillable acres. Note: This farm included several terraces and trees.

Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. Call Hertz at 515-382-1500/800-593-5263 or visit Hertz.ag.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish