May 2023 Wallace’s Farmer “MarketPlace Extra”

0.8%. This was the finding of the late March report from the Iowa Chapter of the Realtors Land Institute. What does that eight-tenths of one percent represent, you ask? That was the percent change in Iowa tillable cropland values over the past 6 months (e.g., September 2022 to March 2023), according to the statewide survey of farmland professionals.   Another report that was released in February from the Chicago Federal Reserve Bank, actually showed Iowa farmland values to be marginally weaker to close 2022 (e.g., -2% from October 1 to January 1).  What has become more clear to me after reviewing these surveys, is that 2 consecutive years of high-flying land value appreciation has now flattened.

I’ve suggested in this column since the beginning of 2023 that the Iowa farmland market seemed to be trading sideways, and the survey data is now reflecting that anecdotal instinct. Let me offer this important reminder – a flat market does not mean the market is weak; it simply means we’ve plateaued and we’re not setting new highs. As we roll through planting season and into summer, market participants will again begin to make production judgements that will provide new direction to both the commodity and land markets. I suspect that the growing season will provide its typical roller-coaster of events that will keep all of us on the edge of our seats.

NORTHWEST

Pocahontas County:

74 +/- acres, located northwest of Manson, recently sold at public auction for $15,600 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 86.1, and equaled $181/CSR2 point on the tillable acres. Note: This farm included a wind turbine that paid $7,680 in annual income with a 2.5% annual escalator.

NORTH CENTRAL

Hancock County:

153 +/- acres, located near Klemme, recently sold at public auction for $14,200 per acre. The farm consisted of 149 +/- tillable acres with a CSR2 of 70.0, and equaled $208/CSR2 point on the tillable acres.

NORTHEAST

Clayton County:

100 +/- acres, located west of Garnavillo, recently sold at public auction for $15,000 per acre. The farm consisted of 97 +/- tillable acres with a CSR2 of 62.2, and equaled $249/CSR2 point on the tillable acres.

WEST CENTRAL

Crawford County:

52 +/- acres, located west of Dow City, recently sold at public auction for $9,000 per acre. The farm consisted of 45 +/- tillable acres with a CSR2 of 57.6, and equaled $181/CSR2 point on the tillable acres.

CENTRAL

Marshall County:

163 +/- acres, located northeast of Zearing, recently sold at public auction for $14,800 per acre. The farm consisted of 160 +/- tillable acres with a CSR2 of 82.8, and equaled $182/CSR2 point on the tillable acres.

EAST CENTRAL

Linn County:

75 +/- acres, located east of Fairfax, recently sold for $9,900 per acre. The farm consisted of 68 +/- tillable acres with a CSR2 of 79.9, and equaled $136/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 39 +/- tillable acres with a CSR2 of 69.7, and equaled $180/CSR2 point on the tillable acres.

SOUTH CENTRAL

Madison County:

98 +/- acres, located southeast of Winterset, recently sold at public auction for $13,900 per acre. The farm consisted of 98 +/- tillable acres with a CSR2 of 81.2, and equaled $171/CSR2 point on the tillable acres.

SOUTHEAST

Des Moines County:

49 +/- acres, located east of Mediapolis, recently sold at public auction for $13,600 per acre. The farm consisted of 41 +/- tillable acres with a CSR2 of 80.8, and equaled $201/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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