May 2018 Wallace’s Farmer “MarketPlace Extra”

The recent release of the bi-annual Realtors® Land Institute land value survey reflected as much, with the survey showing statewide farmland values trending stronger by 2.9% since the September 2017 report, and nearly 5% stronger on an annual year-over-year measure.

The highest quality farms from a production standpoint (e.g., highly productive soils, solid fertility and drainage, and high ‘farm-ability’) continue to sell well and out-perform those farms with poorer soils, waterways or other obstructions. Both farmers and investors are active in today’s market, although farmers are the more prevalent buyer. Continued low interest rates, good crop yields in recent years, and a slight uptick in the commodity markets since the beginning of 2018 have helped to support the Iowa farmland market. 

There are also negative influences that are pressuring farmland values. Primarily, low commodity prices throughout much of the past three to four years, combined with several consecutive years of resulting weak on-farm profitability, continue to keep a lid on land values. Looking ahead in 2018 (and beyond), the expectation for rising interest rates is giving pause to some would-be buyers and their lenders. Foreign trade concerns have also entered the minds of many land market participants, with both NAFTA and Chinese trading relationships being top of mind. For landowners concerned about farmland values dropping in the future, now may be a logical time to consider selling.

NORTHWEST
Clay County: 

159 +/- acres, located west of Royal, recently sold at public auction for $12,800 per acre. The farm consisted of 155 +/- tillable acres with a CSR2 of 96.8 on primary soil types of McCreath, Gillet Grove and Sac. The sale included 2018 farming rights, and equaled $135/CSR2 point on the tillable acres.

NORTH CENTRAL
Hancock County:

80 +/- acres recently sold at public auction for $8,100 per acre. The farm consisted of 80 +/- tillable acres with a CSR2 of 79.2. The sale equaled $102/CSR2 point on the tillable acres.

NORTHEAST
Chickasaw County:

115 +/- acres, located north of Deerfield, recently sold for $7,500 per acre. The farm consisted of 92 +/- tillable acres with a CSR2 of 85.3. The buyer was a local farmer and the sale equaled $110/CSR2 point on the tillable acres. 

WEST CENTRAL
Greene County:

149 +/- acres, located south of Churdan, recently sold at public auction for $10,000 per acre. The parcel consisted of 145 +/- tillable acres with a CSR2 of 81.7. The sale equaled $126/CSR2 point on the tillable acres.

CENTRAL
Jasper County:

152 +/- acres, located north of Colfax, recently sold in two parcels. Parcel 1 consisted of 80 gross acres with 77 +/- tillable acres and a CSR2 of 86; this parcel sold for $10,700 per acre or $129 per CSR2 on the tillable acres. Parcel 2 consisted of 72 gross acres with 68 +/- tillable acres, and a CSR2 of 88; this parcel sold for $10,600 per acre or $127 per CSR2 on the tillable acres.

EAST CENTRAL
Iowa County:

240 +/- acres, located south of Victor, recently sold for $4,425 per acre. The farm consisted of 212 +/- tillable acres with a CSR2 of 53. The sale equaled $94/CSR2 point on the tillable acres.

SOUTHWEST
Page County:

77 +/- acres, located southwest of Clarinda, recently sold at public auction for $8,400 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 79.5. The sale equaled $110/CSR2 point on the tillable acres.

SOUTH CENTRAL
Wayne County:

136 +/- acres, located south of Humeston, recently sold at public auction for $2,125 per acre. The farm consisted of 112 +/- tillable acres with a CSR2 of 52.4; the balance of the parcel included timbered draws that are suitable for recreational hunting. The sale equaled $49/CSR2 point on the tillable acres.

SOUTHEAST
Keokuk County:

160 +/- acres, located west of Keswick, recently sold at public auction for $4,600 per acre. The farm had 112 +/- tillable acres with a CSR2 of 66.5. It’s important to note that 68 +/- acres of the tillable land was enrolled in CRP with a total annual payment of $16,819, while the balance of the farm was comprised of English River timber bottom. The sale equaled $99/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.

Posted By Hertz Farm Management on April 30, 2018