August 2017 Wallace’s Farmer “MarketPlace Extra”
As we approach the late summer and early fall harvest season, land sales activity (the number of farms for sale and sold) is likely to pick up. The strongest values within the market continue to be for top-quality farms with the most productive soils, solid fertility and drainage, and high ‘farm-ability’ (e.g., large and square fields, not an abundance of point rows, waterways/creeks/obstructions). In addition, farm sales located in neighborhoods with strong long-term farmland owners are outperforming those areas that lack local neighborhood strength.
Farmland sales activity has declined slightly each year the past five years. In those locales where multiple large sales have occurred, the potential for weakness is higher, as local capital has been drawn out of the market. A balance of current farmers, local farmland investors, and non-local farmland investors has continued to show interest in purchasing land. The stabilization in the farmland market prices and increase in interest from investors 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 nudging higher and continuing pressure on commodity prices. For owners concerned about farmland values dropping in the future, now may be a logical time to consider selling, as a majority of farmland sales occur following fall harvest.
40 acres, southeast of Ireton, sold at public auction. The farm had 37.83 tillable acres and a CSR2 of 87.7. It sold for $13,000 per acre. The farm had primary soil types of Galva, Primghar and Radford. Corn PLC yield was 174 bu. and soybean yield was 52 bu.
143 acres, South of Bristow, sold in two parcels. Parcel #1, comprised of 35 acres, sold for $5,300 per acre. The parcel consisted of 34.5 crop acres with an average CSR2 of 62.9. The sale equaled $85/CSR2 point/crop acre. Parcel #2, comprised of 108 acres, sold for $4,100 per acre. The parcel consisted of 85.41 crop acres with an average CSR2 of 56. The sale equaled $93/CSR2 point/crop acre.
Black Hawk County:
148.96 acres, adjacent to the Waterloo City Limits, sold at public auction. The farm had a CSR2 of 89.9 on 147.6 tillable acres, and sold for $8,991 per acre. The Buyer was an out-of-state investor.
120 acres, located east of Ralston, sold for $6,907 per acre. The parcel consisted of 93.35 crop acres with an average CSR2 of 87.6. The sale equaled $101/CSR2 point/crop acre.
154 acres, located southeast of Lynnville, sold in two parcels. Parcel #1, comprised of 54 acres, sold for $4,500 per acre. The parcel consisted of 34 crop acres with an average CSR2 of 70.9. The sale equaled $101/CSR2/crop acre. Parcel #2, comprised of 90 acres, sold for $8,700 per acre. The parcel consisted of 88 crop acres with an average CSR2 of 65.1. The sale equaled $137/CSR2/crop acre.
45 acres, south of Victor, sold for $7,600 per acre. The farm had 44.5 tillable acres with a CSR2 of 78.7. The farm had strong eye appeal, a gently topography and was located on a hard surface road. Seller was a farmer; Buyer was a farmer/investor in the area.
104.01 acres, northeast of Carson, sold at public auction for $6,900 per acre. The farm had 100.4 crop acres with a CSR2 of 73.7. This equates to approximately $97/CSR2 point/crop acre.
120 acres, northeast of Chariton, sold for $2,400 per acre. The farm was a mix of timber, pasture, 4 ponds and 43 crop acres with a CSR2 rating of 31.
35 acres, west of Crawfordsville, sold at public auction for $9,150 per acre. The farm had 33.3 tillable acres and a CSR2 of 83. The seller was an estate.
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.