March 2022 Wallace’s Farmer “MarketPlace Extra”

Early 2022 farmland sales have continued to carry the momentum of late 2021. Despite higher input prices for seed, fertilizer, equipment, and other inputs for the 2022 growing season, commodity prices in the early year have also continued to inch higher. Part of the creep higher for corn, soybeans, and wheat prices is the result of shrinking crop production numbers in South America, while another part can be attributed to potential political instability coming out of Ukraine. Either way, the acreage battle is setting up for U.S. Corn Belt producers – and profit potential for 2022 is growing as markets rise.

Keep your eye on anything that may influence the above-mentioned production and political situations, because these topics influence both the grain markets and attitudes in farm country. And as we all know, grain markets and producer attitudes very much impact land sales. Likewise, keep your other eye locked on the Federal Reserve and their movement(s) that will influence the interest rate markets in the coming weeks and months. The Fed’s stated desire to temper current inflation readings in our general economy – likely through interest rate increases – will also impact borrowing costs for everything, including farmland. Reviewing sales from the past 30-60 days, there’s still plenty of appetite and capacity to acquire additional land.

NORTHWEST

Clay County:

77 +/- acres, located west of Royal, recently sold at public auction for $15,500 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 91.1, and equaled $177/CSR2 point on the tillable acres.

NORTH CENTRAL

Butler County:

246 +/- acres, located near Aplington, recently sold at public auction for $14,175 per acre. The farm consisted of 239 +/- tillable acres with a CSR2 of 89.0, and equaled $164/CSR2 point on the tillable acres.

NORTHEAST

Bremer County:

56 +/- acres, located northwest of Waverly, recently sold at public auction for $15,100 per acre. The farm consisted of 56 +/- tillable acres with a CSR2 of 88.7, and equaled $170/CSR2 point on the tillable acres.

WEST CENTRAL

Crawford County:

80 +/- acres, located southeast of Danbury, recently sold at public auction for $13,600 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 57.8, and equaled $244/CSR2 point on the tillable acres.

CENTRAL

Hardin County:

199 +/- acres, located east of Owasa, recently sold at public auction for $13,900 per acre. The farm consisted of 189 +/- tillable acres with a CSR2 of 86.4, and equaled $169/CSR2 point on the tillable acres.

EAST CENTRAL

Muscatine County:

188 +/- acres, located west of Atalissa, recently sold for $11,500 per acre. The farm consisted of 183 +/- tillable acres with a CSR2 of 80.5, and equaled $147/CSR2 point on the tillable acres.

SOUTHWEST

Mills County:

158 +/- acres, located north of Emerson, recently sold at public auction for $12,600 per acre. The farm consisted of 152 +/- tillable acres with a CSR2 of 80.9, and equaled $162/CSR2 point on the tillable acres.

SOUTH CENTRAL

Lucas County:                                                                                                              

40 +/- acres, located north of Chariton, recently sold at public auction for $9,600 per acre. The farm consisted of 39 +/- tillable acres with a CSR2 of 69.8, and equaled $141/CSR2 point on the tillable acres.

SOUTHEAST

Henry County:

184 +/- acres, located northeast of Mount Pleasant, recently sold at public auction for $8,200 per acre. The farm consisted of 132 +/- tillable acres with a CSR2 of 80.0, and equaled $143/CSR2 point on the tillable acres. Note: The balance of the farm was in wooded draws, a pond, and building site.

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.