October 2023 Wallace’s Farmer “MarketPlace Extra”

Land Prices Steady Despite 2023 Headwinds

The Iowa farmland market continues to produce steady, and arguably impressive, sale results. Few 2023 sales have set new records.  However, the market has been resilient in the face of higher interest rates and lower grain prices. Strong profits from the past 3 years have seemingly offset near-term headwinds, and less overall land has come to the market in 2023, thereby helping to support prices. As harvest begins and yield totals emerge, the market will again make judgement as to how aggressive or passive prospective buyers will be when making purchase decisions. I believe that a lower input cost structure for 2024 (e.g., anhydrous, dry fertilizer, etc.), compared to the 2023 crop, should help support profit margins for next year’s crop – even with comparably lower grain prices. Auction bidders at several late summer sales, as noted below, seem to be thinking the same.

NORTHWEST

Dickinson County:

151 +/- acres, located north of Terril, recently sold at public auction for $16,800 per acre. The farm consisted of 140 +/- tillable acres with a CSR2 of 88.3, and equaled $205/CSR2 point on the tillable acres.

NORTH CENTRAL

Mitchell County:

153 +/- acres, located near Otranto, recently sold at public auction for $13,800 per acre. The farm consisted of 149 +/- tillable acres with a CSR2 of 84.3, and equaled $168/CSR2 point on the tillable acres.

NORTHEAST

Howard County:

79 +/- acres, located east of Riceville, recently sold at public auction for $13,775 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 86.0, and equaled $164/CSR2 point on the tillable acres.

WEST CENTRAL

Greene County:

78 +/- acres, located north of Jefferson, recently sold at public auction for $12,100 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 69.3, and equaled $179/CSR2 point on the tillable acres.

CENTRAL

Marshall County:

137 +/- acres, located northeast of Albion, recently sold at public auction for $13,300 per acre. The farm consisted of 129 +/- tillable acres with a CSR2 of 88.5, and equaled $160/CSR2 point on the tillable acres.

EAST CENTRAL

Johnson County:

78 +/- acres, located northeast of Lone Tree, recently sold for $14,200 per acre. The farm consisted of 75 +/- tillable acres with a CSR2 of 88.1, and equaled $168/CSR2 point on the tillable acres.

SOUTHWEST

Montgomery County:

118 +/- acres, located northeast of Stanton, recently sold at public auction for $5,500 per acre. The farm consisted of 76 +/- cropland acres and 30 +/- acres of CRP, with a combined CSR2 of 58.5, and equaled $105/CSR2 point on the tillable acres (cropland and CRP combined).  Note: The balance of the farm was in waterways and terraces.

SOUTH CENTRAL

Union County:

156 +/- acres, located west of Arispe, recently sold for $10,004 per acre. The farm consisted of 145 +/- tillable acres with a CSR2 of 73.5, and equaled $146/CSR2 point on the tillable acres.  

SOUTHEAST

Louisa County:

81 +/- acres, located northeast of Winfield, recently sold at public auction for $16,950 per acre. The farm consisted of 80 +/- tillable acres with a CSR2 of 91.0, and equaled $189/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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