Farm land for sale sign
DEMAND FOR LAND: Positive market factors are being countered by slightly increasing interest rates and ongoing down pressure on crop prices.

Iowa land market shows signs of strength

Investor interest in farmland is stable to increasing, supporting land values.

The Iowa farmland market is showing signs of strength as fall harvest season nears. Land sales activity (number of farms for sale and sold) is likely to pick up following harvest. Strongest values continue to be for top-quality farms with the most productive soils, solid fertility and drainage, and high “farm-ability” (large and square fields, and few point rows, waterways, creeks or obstructions).

In those locales where multiple land sales have occurred or where drought is impacting 2017 yield results, potential for sale price weakness is greater, as local capital will be less available (or has already been drawn out of the market). However, investor interest in farmland is stable to increasing, thereby supporting land values.

Stabilization in the land market and increased interest from investors is in reaction to a search for solid investments, low-interest rates and a general belief that land is a tangible asset and sound investment.

These positive market factors are countered by slightly increasing interest rates and ongoing pressure in commodity prices. For owners concerned about farmland values dropping in the future, now may be a logical time to consider selling, as a majority of land sales in any given year occur following fall harvest.

NORTHWEST

O’Brien County: South of Sheldon, 73 acres sold at public auction for $13,700 per acre. The farm has 71.6 tillable acres and a 94.1 CSR2. Primary soil types are Galva, Marcus, Primghar and Afton. Corn PLC yield is 182 bushels and soybean yield is 56 bushels.

NORTH CENTRAL

Floyd County: Near Marble Rock, 139 acres sold in two parcels. Parcel 1, comprised of 76 acres, sold for $7,650 per acre. The parcel consists of 76 crop acres with a 71.4 CSR2. The sale equals $107 per CSR2 point per crop acre. Parcel 2 (63 acres) sold for $7,650 per acre. The parcel consists of 62.6 crop acres with a 72.9 CSR2. The sale equals $105 per CSR2 point per crop acre.

NORTHEAST

Black Hawk County: South of Dunkerton, 79 acres sold for $10,150 per acre. The farm has a CSR2 of 86.3 on 79 tillable acres. Seller is a local farm family, buyer is an out-of-state investor.

WEST CENTRAL

Sac County: Northwest of Odebolt, 160 acres sold for $8,125 per acre. The farm has 133.8 cropland acres and 13.1 CRP acres, with an average 88 CSR2 on the tillable cropland acres. The sale equals $110 per CSR2 point per crop acre or $9,715 per tillable cropland acre.

CENTRAL

Webster County: In Pleasant Valley Township, 79 acres sold for $8,950 per acre. The farm has 74.85 crop acres with an 82.8 average CSR2. The sale equals $115 per CSR2 point per crop acre or $9,490 per tillable cropland acre.

EAST CENTRAL

Linn County: Southwest of Troy Mills, 80 acres sold for $8,375 per acre. The farm has 74.8 crop acres with an 80.5 CSR2. The sale equals $111 per CSR2 point per crop acre or $8,957 per tillable cropland acre. Buyer was an investor.

SOUTHWEST

Taylor County: North of New Market, 110 acres sold at public auction for $3,560 per acre. The farm has 54.3 crop acres with a 64.9 average CSR2. Balance of the farm, 55 acres, is in pasture.

SOUTH CENTRAL

Marion County: North of Pella, 59.5 acres sold at public auction for $10,900 per acre. It has 58.5 crop acres with an average CSR2 of 84. The sale equals $132 per CSR2 point per crop acre, or $11,086 per tillable cropland acre.

SOUTHEAST

Keokuk County: Northeast of South English, 40.6 acres sold for $4,926 per acre. The farm has 37.3 crop acres with an average CSR2 of 81.9, of which 37.05 acres are enrolled under three separate CRP contracts with $9,159 in annual income.

Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. All acres are considered “more or less” unless otherwise noted. Call Hertz at 800-593-5263 or visit hertz.ag.

 

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