July 2023 Wallace’s Farmer “MarketPlace Extra”

Farmland prices remain strong across the State of Iowa. However, the early summer farmland market is different than it was 12 months ago.  Notably, grain markets are weaker, and interest rates are higher.  Looking back, the Ukraine-Russia war had 2022 grain markets very unsettled and trending higher, and our export demand was strong. Today, the war continues, but world markets are adjusting to the protracted conflict. In addition, during our recent winter season Brazil grew an enormous soybean and corn crop. This, in combination with our strong U.S. dollar, a large U.S. crop forecast, a generally slowing world economy, and some worldwide geo-political tensions (especially with China), has weakened our export demand/positioning. 

What does this mean for the rest of the summer and 2023? As I see it, we’re back to managing through the ups and downs of a “weather market,” and an increasing likelihood of profit margins really tightening up in 2023. Fortunately, Iowa farmers and farmland owners came into this growing season in as healthy of a financial position as any in recent history. Know that today’s land market is stable. However, prospective land buyers are again sharpening their pencils, and they are increasingly cautious as they approach an acquisition. As you can see in the sales noted below, this market/mindset shift does not mean the market is weak, but it is not as enthusiastic as this time a year ago.

NORTHWEST

Dickinson County:

80 +/- acres, located northeast of Terril, recently sold at public auction for $13,800 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 84.6, and equaled $172/CSR2 point on the tillable acres.

NORTH CENTRAL

Floyd County:

160 +/- acres, located near Colwell, recently sold for $13,590 per acre. The farm consisted of 154 +/- tillable acres with a CSR2 of 81.4, and equaled $173/CSR2 point on the tillable acres.

NORTHEAST

Bremer County:

59 +/- acres, located south of Plainfield, recently sold for $12,973 per acre. The farm consisted of 59 +/- tillable acres with a CSR2 of 87.7, and equaled $148/CSR2 point on the tillable acres.

WEST CENTRAL

Harrison County:

74 +/- acres, located southeast of Dunlap, recently sold at public auction for $15,500 per acre. The farm consisted of 73 +/- tillable acres with a CSR2 of 74.0, and equaled $212/CSR2 point on the tillable acres.

CENTRAL

Jasper County:

124 +/- acres, located southwest of Newton, recently sold at public auction for $11,500 per acre. The farm consisted of 122 +/- tillable acres with a CSR2 of 74.1, and equaled $158/CSR2 point on the tillable acres.

EAST CENTRAL

Linn County:

40 +/- acres, located southeast of Cedar Rapids, recently sold for $14,500 per acre. The farm consisted of 39 +/- tillable acres with a CSR2 of 67.0, and equaled $222/CSR2 point on the tillable acres.

SOUTHWEST

Cass County:

47 +/- acres, located south of Atlantic, recently sold at public auction for $10,400 per acre. The farm consisted of 37 +/- tillable acres with a CSR2 of 69.7, and equaled $189/CSR2 point on the tillable acres.  

SOUTH CENTRAL

Wayne County:

49 +/- acres, located east of Derby, recently sold at public auction for $4,000 per acre. The farm consisted of 33 +/- tillable acres with a CSR2 of 53.3, and equaled $111/CSR2 point on the tillable acres.

SOUTHEAST

Keokuk County:

118 +/- acres, located west of North English, recently sold at public auction for $10,800 per acre. The farm consisted of 103 +/- tillable acres with a CSR2 of 64.8, and equaled $191/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. 

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