November 2024 Wallace’s Farmer MarketPlace Extra

November 2024 Land Values Update 

In last month’s column, I mentioned that Iowa land values had been “stickier” than some had expected through the first three-quarters of the year. After all, lower commodity prices and a higher interest rate environment are each a significant pressure point to the land market, and it was only natural to expect those pressures to negatively impact values. In late September we received confirmation of exactly that on a statewide basis – the Iowa Realtors Land Institute (RLI) twice annual survey reported a 5% across-the-board softening in Iowa farmland values. This recent report followed a more subtle and geographically uneven negative shift (-3%) from the March 2024 RLI report, and serves as the clearest sign to date that Iowa land values are softening.

On the flip side, early harvest results have generated more smiles than frowns. And, the recent short-term interest rate cut by the Federal Reserve is helpful to anyone who has debt or may be borrowing money this fall to buy a farm. However, it is now clear the land market is shifting lower, and most of the early fall land auctions reflected recalibrated Seller expectations. Of course, no Seller wants to admit they have missed the “high” in the market, but the vast majority understand the big picture. There are still plenty of buyers for additional land being offered to the market, they are just not willing to pay quite as much as a year ago because profits are down, protecting working capital is crucial, and the forward outlook for 2025 is even less certain. As I often say, the market is really smart. With that being said, the market is functioning and there have still been some impressive sales in the past 45 days, including several noted below.

NORTHWEST

O’Brien County:

Located southeast of Hartley, 80 +/- acres recently sold at public auction for $15,900 per acre. The farm consisted of 75 +/- tillable acres with a CSR2 (Corn Suitability Rating index) of 96.7, and equaled $175 per CSR2 point on the tillable acres.

NORTH CENTRAL

Floyd County:

Located east of Alexander, 160 +/- acres recently sold at public auction for $13,600 per acre. The farm consisted of 155 +/- tillable acres with a CSR2 of 76.7, and equaled $183 per CSR2 point on the tillable acres.

NORTHEAST

Fayette County:

Located southeast of Hawkeye, 72 +/- acres recently sold at public auction for $10,500 per acre. The farm consisted of 70 +/- tillable acres with a CSR2 of 88.2, and equaled $122 per CSR2 point on the tillable acres.

WEST CENTRAL

Ida County:

Located east of Arthur, 80 +/- acres recently sold at public auction for $14,200 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 85.1, and equaled $173 per CSR2 point on the tillable acres.

CENTRAL

Story County:

Located south of Zearing, 77 +/- acres recently sold for $12,900 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 85.8, and equaled $156 per CSR2 point on the tillable acres.

EAST CENTRAL

Jackson County:

Located north of Spragueville, 505 +/- acres recently sold for $5,961 per acre. The combination farm consisted of 291 +/- tillable acres with a CSR2 of 42.9, and the balance in timber.

SOUTHWEST

Page County:

Located west of Villisca, 77 +/- acres recently sold at public auction for $13,600 per acre. The farm consisted of 71 +/- tillable acres with a CSR2 of 88.4, and equaled $167 per CSR2 point on the tillable acres.

SOUTH CENTRAL

Wayne County:

Located west of Millerton, 80 +/- acres recently sold at public auction for $7,000 per acre. The farm consisted of 73 +/- tillable acres with a CSR2 of 55.9, and equaled $137 per CSR2 point on the tillable acres.

SOUTHEAST

Henry County:

Located south of Mt. Pleasant, 143 +/- acres recently sold at public auction for $9,000 per acre. The farm consisted of 139 +/- tillable acres with a CSR2 of 55.2, and equaled $167 per CSR2 point on the tillable acres.

Hensley is president of Hertz Real Estate Services, which compiled this list, but did not handle all sales.  Call Hertz at 800-593-5263 or visit hertz.ag.

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