September 2024 Wallace’s Farmer MarketPlace Extra

September 2024 Land Values Update 

Thus far, the 2024 growing season has provided an unusual level of “variety” – some good, some not so good. Consider…

• Planting season started in early April, but then didn’t finish until early June.
• Drought conditions persisted early in the year, but by July those spring and early summer rains had completely cleared Iowa from any registered area on the NOAA drought monitor map.
• Commodity prices started the year at modestly profitable levels, but by July were well below a break-even cost of production when based on average production.
• And, we came into 2024 with widespread expectation that interest rates would be lower by mid-year, but because of stubborn inflationary pressures, lower rates have not yet materialized.

Each of these factors, among many others, figures into the overall equation for farmland values. And here in early August, I believe these influences have the land market is in “wait-and-see” mode. I will admit that most of the variety we’ve experienced has created more pressure pointing towards lower land values, than fuel pointing towards higher land values. The one wildcard exception to that conclusion may end up being great crop yields. As summer has matured, most corners of the State are prepping bins for an average-plus crop. There are notable exceptions, but broadly, abundant rainfall this year has been much more of a blessing than a curse.  And, if we finish this crop season with big numbers in the bin, that should continue to propel buyer-interest in fall sale offerings.

NORTHWEST

Buena Vista County:

North of Marathon, 77 +/- acres recently sold at public auction for $11,500 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 (Corn Suitability Rating index) of 82.4, and equaled $145 per CSR2 point on the tillable acres.

NORTH CENTRAL

Franklin County:

Located near Bradford, 151 +/- acres recently sold at public auction for $11,400 per acre. The farm consisted of 142 +/- tillable acres with a CSR2 of 85.8, and equaled $141 per CSR2 point on the tillable acres.

NORTHEAST

Fayette County:

Located east of Sumner, 150 +/- acres recently sold for $9,000 per acre. The farm consisted of 149 +/- tillable acres with a CSR2 of 63.6, and equaled $142 per CSR2 point on the tillable acres.

WEST CENTRAL

Sac County:

Located west of Auburn, 37 +/- acres recently sold at public auction for $20,000 per acre. The farm consisted of 35 +/- tillable acres with a CSR2 of 86.5, and equaled $244 per CSR2 point on the tillable acres.

CENTRAL

Dallas County:

Located southeast of Perry, 61 +/- acres recently sold for $14,500 per acre. The farm consisted of 60 +/- tillable acres with a CSR2 of 87.0, and equaled $169 per CSR2 point on the tillable acres.

EAST CENTRAL

Muscatine County:

Located south of Atalissa, 212 +/- acres along the Cedar River recently sold for $7,650 per acre. The farm consisted of 212 +/- tillable acres with a CSR2 of 58.3, and equaled $131 per CSR2 point on the tillable acres.

SOUTHWEST

Mills County:

Located northeast of Silver City, 110 +/- acres recently sold at public auction for $13,500 per acre. The farm consisted of 106 +/- tillable acres with a CSR2 of 79.4, and equaled $176 per CSR2 point on the tillable acres.

SOUTH CENTRAL

Union County:

Located south of Arispe, 40 +/- acres recently sold at public auction for $10,550 per acre. The farm consisted of 37 +/- tillable acres with a CSR2 of 72.8, and equaled $156 per CSR2 point on the tillable acres.

SOUTHEAST

Henry County:

Located northeast of Houghton, 106 +/- acres recently sold at public auction for $12,000 per acre. The farm consisted of 106 +/- tillable acres with a CSR2 of 73.2, and equaled $164 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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