June 2017 Wallace’s Farmer “MarketPlace Extra”
Farmland sales activity (the number of farms for sale and sold) has continued to decline slightly each year the past five years. Farmland owners and investors have been the most interested buyers. An increase in interest has been observed by non-farming landowners and investment buyers. The stabilization in the farmland market prices, and increase in interest from investors is in reaction to a search for solid investments, low-interest rates and a general belief that farmland is a tangible asset and sound investment.
These positive factors are countered by interest rates that are beginning to increase, and commodity prices that have eased down from earlier this year. Borrowing interest rates have increased nearly 1 percent since before last fall’s election. For owners concerned about farmland values dropping, it may be time to consider selling.
NORTHWEST
Sioux County:
120.76 acres, north of Newkirk, sold at public auction. The farm had 117 tillable acres and a CSR2 of 96.5. It sold for $15,000 per acre. The farm had primary soil types of Galva, Primghar, Marcus, Afton, Colo and Calco. Corn PLC yield was 186 and soybean yield was 55. The nearly level to gently rolling farm sold with full possession, and buyer reimbursed previous tenant for last fall’s manure and application cost. The fall tillage was included in the sale price. The seller was represented by a REALTOR®.
NORTH CENTRAL
Cerro Gordo County:
138.9 acres, southwest of Rockwell, sold in two parcels. Parcel 1 was 58.9 acres with 56.8 crop acres, and a CSR2 of 83.3. It sold for $7,300 per acre or $91/CSR2/crop acre. Parcel 2 was 80 acres with 78.4 crop acres, and a CSR2 of 75. It sold for $7,050 per acre or $96/CSR2/crop acre.
NORTHEAST
Delaware County:
167 acres, located northeast of Ryan, sold in two parcels. The first parcel, of 117 acres, sold for $9,500 per acre. Parcel 1 had 109.8 tillable acres with a CSR2 of 84.3. The second parcel, of 50 acres, sold for $11,000 per acre. Parcel 2 had 47.7 tillable acres with a CSR2 of 88.2. The seller was a family and the buyers were neighboring farmers.
WEST CENTRAL
Carroll County:
188 acres, northwest of Carroll, sold for $8,950 per acre. The farm included a wind turbine and had 186.87 crop acres and a CSR2 of 65.6. Sale equated to $137/CSR2/crop acre.
CENTRAL
Grundy County:
149.22 acres, east of Dike, sold for $10,600 per acre. The farm had 149.14 crop acres with a CSR2 of 85.9. The seller was a local farmer and the buyer was an investor.
EAST CENTRAL
Muscatine County:
50 acres, southwest of Milton, sold for $10,000 per acre. The farm had 49.8 crop acres with a CSR2 of 90.1. The buyer and seller were investors.
SOUTHWEST
Cass County:
102.59 acres, southeast of Atlantic, sold for $8,400 per acre. The farm had 97.3 crop acres with a CSR2 of 80. This equates to $111.75/CSR2/crop acre.
SOUTH CENTRAL
Madison County:
107.2 acres, southwest of Earlham, sold at public auction for $8,950 per gross acre. The farm had 88.27 tillable acres, a CSR2 of 77.1, 10.4 CRP acres paying $1,726 per year, and the balance of acres in a treed waterway.
SOUTHEAST
Jefferson County:
40 acres, north of Fairfield, sold at public auction for $6,100 per acre. The farm had 32.58 tillable acres and a CSR2 of 66.9. The remainder of the farm was timber.
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.
