July 2022 Wallace’s Farmer “MarketPlace Extra”

What a difference a month can make! 30 days ago, the world outside our windows was still three shades of brown and two shades of gray, as winter just didn’t want to give up this spring. However, over the past 3-4 weeks, planters have raced across the landscape to complete their tasks, and the world has quickly greened up. And now, warmer temps and adequate moisture (for now!) in most corners of the state of Iowa have the crop off to a very promising start.

The early summer land market has also been active and “warm” in 2022, especially compared to this time period in recent years.  Strong grain prices, and an expectation for even higher interest rates later this year, have both farmland Sellers and prospective farmland Buyers actively pursuing sale/purchase opportunities. As I’ve alluded to in recent months, the positive influence from higher grain prices has thus far outpaced the negative influence from a higher interest rate environment.  But, at some point that may not be the case.  As we continue to see sales activity this summer, this push-pull dynamic will continue to be worth watching.  For now, the farmland market maintains its strength, as the example sales below attest.

NORTHWEST

Clay County:

84 +/- acres, located southwest of Royal, recently sold at public auction for $21,000 per acre. The farm consisted of 80 +/- tillable acres with a CSR2 of 96.8, and equaled $228/CSR2 point on the tillable acres.

NORTH CENTRAL

Butler County:

37 +/- acres, located near Parkersburg, recently sold for $15,200 per acre. The farm consisted of 36 +/- tillable acres with a CSR2 of 87.6, and equaled $178/CSR2 point on the tillable acres.

NORTHEAST

Black Hawk County:

95 +/- acres, located near the west edge of Cedar Falls city limits, recently sold at sealed bid sale for $26,212 per acre. The farm consisted of 89 +/- tillable acres with a CSR2 of 89.2, and equaled $314/CSR2 point on the tillable acres. Note: This land was near the edge of residential development.

WEST CENTRAL

Crawford County:

179 +/- acres, located southwest of Kiron, recently sold at public auction for $9,000 per acre. The farm consisted of 166 +/- tillable acres with a CSR2 of 63.0, and equaled $154/CSR2 point on the tillable acres.

CENTRAL

Jasper County:

222 +/- acres, located southeast of Prairie City, recently sold at public auction for $12,900 per acre. The farm consisted of 216 +/- tillable acres with a CSR2 of 71.0, and equaled $186/CSR2 point on the tillable acres.

EAST CENTRAL

Johnson County:

79 +/- acres, located east of Iowa City, recently sold for $14,175 per acre. The farm consisted of 78 +/- tillable acres with a CSR2 of 80.7, and equaled $178/CSR2 point on the tillable acres.

SOUTHWEST

Taylor County:

170 +/- acres, located southeast of Bedford, recently sold at public auction for $6,600 per acre. The farm consisted of 111 +/- tillable acres with a CSR2 of 69.3, and equaled $146/CSR2 point on the tillable acres. Note: The balance of the farm was timber, ponds, and waste.

SOUTH CENTRAL

Madison County:                                                                                                       

34 +/- acres, located south of St. Charles, recently sold at public auction for $15,100 per acre. The farm consisted of 33 +/- tillable acres with a CSR2 of 91.5, and equaled $170/CSR2 point on the tillable acres.

SOUTHEAST

Wapello County:

66 +/- acres, located north of Ottumwa, recently sold at public auction for $10,500 per acre. The farm consisted of 63 +/- tillable acres with a CSR2 of 70.9, and equaled $155/CSR2 point on the tillable acres.

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