May 2017 Wallace’s “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. 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
Palo Alto County:
240 acres, southeast of Emmetsburg, sold in two parcels at public auction. Parcel 1 had 80 acres with 75.38 tillable acres and a CSR2 of 86.6. It sold for $9,200 per acre. Parcel 2 had 160 acres with 153.68 tillable acres and a CSR2 of 87.1. It also included a 20,000-bushel grain storage bin and 26.4 acres of CRP paying $168.20 per acre. It sold for $9,000 per acre. Both farms had primary soil types of Nicollet, Clarion, Canisteo, Webster and Okoboji. Corn PLC yield was 179 and soybean yield was 45. The farms sold with full possession, and the buyer reimbursed the previous tenant for fall tillage. The seller was represented by a REALTOR®.
NORTH CENTRAL
Floyd County:
110 acres, along the Shell Rock river, was offered in two parcels (70 Ac. and 40 Ac.) via private treaty. The parcels had a combined 82.6 tillable acres, including 65.5 acres in CRP. The average CSR2 of the CRP and tillable acres was 62.3. The remainder of the acreage was oxbows, timber and river frontage. The farm sold for $3,700 per acre. The buyer was an investor-landowner completing a 1031 tax deferred exchange.
NORTHEAST
Bremer County:
99.16 acres, located east of Plainfield, sold for $7,674.46 per acre. The farm had 94.31 tillable acres with a CSR2 of 87.2. The seller was a family LLC and the buyer an investor.
WEST CENTRAL
Monona County:
446.83 acres, in Center Township, sold in two parcels. Parcel 1 had 133 acres, 106.2 crop acres and a CSR2 of 86.8. It sold for $9,025 per acre. Parcel 2 had 313.83 acres, 120.84 crop acres (all in pasture) and sold for $3,000 per acre.
CENTRAL
Story County:
80 acres, south of Zearing, sold for $10,800 per acre. The farm had 75.68 crop acres with a CSR2 of 85.2. The buyer was a local farmer and the auction was conducted by a REALTOR® professional auctioneer.
EAST CENTRAL
Linn County:
155 acres, south of Central City, was offered in two tracts at public auction. It sold for $6,800 per acre and had 152 crop acres with a CSR2 of 61. The buyer was a local farmer.
SOUTHWEST
Fremont County:
151.5 acres, southeast of Sydney, sold at public auction for $6,000 per acre. The farm had 125.99 crop acres with a CSR2 of 84. The farm had a PLC corn yield of 141 and PLC bean yield of 47.
SOUTH CENTRAL
Lucas County:
80 acres, northeast of Derby, sold at public auction for $4,900 per acre. The farm had a CSR2 of 53.4 and was 97 percent tillable.
SOUTHEAST
Keokuk County:
224 acres, south of Deep River, sold at public auction in two tracts. Tract 1 sold for $4,900 per acre and had 91.8 tillable acres with a CSR2 of 59.4. Tract 2 sold for $3,900 per acre and had 108.8 acres of cropland with a CSR2 of 59. Both tracts were enrolled in CRP.
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.
