April 2017 Wallace’s Farmer “MarketPlace Extra”
Iowa farms harvested record-high corn and soybean yields last fall. The high yields, surprisingly strong commodity prices, plus ARC County farm program payments have helped buffer lower commodity prices.
Farmland sales activity (the number of farms for sale and sold) has declined slightly each year the past five years. Farmland owners and investors have had an increase in purchasing interest, particularly from non-farming landowners and investment buyers. This is in reaction to a search for solid investments, low-interest rates and a general belief that farmland is a tangible asset and sound investment.
These positive factors are countered by interest rates that are beginning to increase. Borrowing interest rates have increased by about 1 percent. For owners concerned about farmland values dropping, it may be a good time to consider selling.
137.26 acres in two parcels, south of Rock Rapids, sold at public auction. 67.72 acres with 65.56 tillable acres and a CSR2 of 72.8 sold for $12,600 per acre. The second parcel of 69.54 acres with 65.49 tillable acres and a CSR2 of 73.2 sold for $12,900 per acre. Both farms have primary soil types of Moody, Egan, Trent, Marcus and Calco. Corn PLC yield was 167 and soybean yield was 46. The seller was represented by a REALTOR®.
Cerro Gordo County:
138.9 acres, southwest of Rockwell, sold at public auction in two parcels. The first parcel had 58.9 acres, 56.8 tillable acres and a CSR2 of 83.3. It sold for $7,300 per acre or $91/CSR2 point/tillable acre. The second parcel had 80 acres with 78.4 tillable acres and a CSR2 of 75. It sold for $7,050 per acre or $96/CSR2 point/tillable acre. The auction was conducted by a professional auctioneer.
199 acres located southwest of Waucoma sold at public auction. The farm had 125.98 tillable acres with a CSR2 of 65.3, and sold for $3,450 per acre. The seller was an estate and the buyer a local farmer. The seller was represented by a REALTOR®.
244.02 acres, south of Little Sioux, sold in two parcels. Parcel 1 had 126.62 acres, 122.74 crop acres and a CSR2 of 81.2. It sold for $8,350 per acre or $106/CSR2 point/tillable acre. Parcel 2 had 117.4 acres, 108.65 crop acres and a CSR2 of 56.7. It sold for $6,450 per acre or $123/CSR2 point/tillable acre.
109 acres in Des Moines Township sold for $3,700 per acre. The farm had 67 crop acres with a CSR2 of 46.9 and equated to a sale of $137/CSR2 point/tillable acre.
36 acres north of Palo sold for $298,000 or $8,278 per acre. The farm had 33.5 crop acres with a CSR2 of 87.3. The farm was gently rolling with nice eye appeal. The buyer was a local farmer.
104.01 acres north of Carson sold for $6,900 per acre. The farm had 100.48 crop acres with a CSR2 of 73.7. This equates to $96.91/CSR2 point/tillable acre.
144.8 acres northwest of Osceola sold for $2,470 per gross acre. The farm had a CSR2 of 27 and consisted of 60 acres open pasture and 83 acres of timber pasture.
66.9 acres south of Packwood sold at public auction for $430,000 or $6,427.50 per acre. The farm had 57.85 acres of cropland, 7.9 acres in CRP and a CSR2 of 88.3. The farm was located on a hard surface road and was purchased by a local farmer.
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.