August 2023 Wallace’s Farmer “MarketPlace Extra”

Farmland prices remain stable across the State of Iowa. We’ve generally observed a “sideways” land market for the past 90 days. After a weak commodities market through the spring, the early growing season featured a drought-induced weather scare that drove corn and soybean prices higher. However, the June 30th WASDE report from USDA surprised everyone with 2 million more corn acres and 4 million fewer soybean acres than previously predicted. This sent the corn market lower and soybean market higher.

Where does this leave the farmland market? As new land sales come to market, farmers and non-local investors are making decisions only as they have to, with no overriding market strength or weakness themes driving land prices higher or lower. This is because there are current offsetting market realities. Higher interest rates are not supportive to land prices, and breakeven corn is not exciting, either. But, soybeans are profitable, and some areas in Iowa are setting up phenomenal crop prospects – not to mention that there have been very profitable crop-sale windows in 2023 for both corn and beans.  So, it seems to be a mid-summer “wait-and-see” market. The recent sales noted below point back to my opening comment – farmland prices remain stable across the State of Iowa.

NORTHWEST

Osceola County:

140 +/- acres, located east of Ashton, recently sold at public auction for $18,100 per acre. The farm consisted of 138 +/- tillable acres with a CSR2 of 95.3, and equaled $193/CSR2 point on the tillable acres.

NORTH CENTRAL

Mitchell County:

80 +/- acres, located near Osage, recently sold for $10,650 per acre. The farm consisted of 75 +/- tillable acres with a CSR2 of 82.4, and equaled $138/CSR2 point on the tillable acres.

NORTHEAST

Winneshiek County:

119 +/- acres, located north of Burr Oak, recently sold for $14,500 per acre. The farm consisted of 111 +/- tillable acres with a CSR2 of 87.8, and equaled $177/CSR2 point on the tillable acres.

WEST CENTRAL

Sac County:

220 +/- acres, located northwest of Schaller, recently sold at public auction for $13,600 per acre. The farm consisted of 187 +/- tillable cropland acres with a CSR2 of 93.8, and equaled $170/CSR2 point on the cropland acres. Note: There was an additional 20 +/- acres of this farm enrolled in CRP.

CENTRAL

Marshall County:

94 +/- acres, located southwest of Le Grand, recently sold at public auction for $12,100 per acre. The farm consisted of 95 +/- tillable acres with a CSR2 of 72.0, and equaled $166/CSR2 point on the tillable acres.

EAST CENTRAL

Cedar County:

69 +/- acres, located southeast of Tipton, recently sold for $12,250 per acre. The farm consisted of 68 +/- tillable acres with a CSR2 of 63.4, and equaled $196/CSR2 point on the tillable acres.

SOUTHWEST

Adair County:

102 +/- acres, located south of Fontanelle, recently sold at public auction for $7,500 per acre. The farm consisted of 97 +/- tillable acres with a CSR2 of 59.2, and equaled $133/CSR2 point on the tillable acres.  

SOUTH CENTRAL

Appanoose County:

26 +/- acres, located southeast of Moravia, recently sold at public auction for $6,700 per acre. The farm consisted of 26 +/- tillable acres with a CSR2 of 55.1, and equaled $122/CSR2 point on the tillable acres.

SOUTHEAST

Wapello County:

79 +/- acres, located north of Ottumwa, recently sold at public auction for $14,100 per acre. The farm consisted of 79 +/- tillable acres with a CSR2 of 85.8, and equaled $164/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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