February 2017 Wallace’s Farmer “MarketPlace Extra”
Many farms harvested record high corn and soybean yields in 2016. The high yields, a little recovery in commodity prices, plus the ARC County farm program payments have helped buffer lower commodity prices.
While farmland sales activity is less than the past couple years, it has increased post-harvest; with 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.
Record low interest rates for financing farmland, “under-deployed cash”, a lack of farmland offered for sale on the market, as well as the record high yields are all factors supporting the farmland market prices and reducing the move to lower values. These positive factors are countered by interest rates that are beginning to increase.
Potential buyers would like to buy farmland at prices they anticipate may be reached next year, while sellers wish they could sell for prices available two years ago.
80 acres located northwest of Melvin sold at public auction. The farm had 77.13 gently sloping crop acres and a CSR2 of 98. Primary soils were Primghar, Marcus and Galva. The farm PLC corn yield was 144 and the soybean yield was 45. It sold for $12,200 per acre. The farm was auctioned and the seller was represented by a REALTOR®.
Worth and Mitchell County:
185.25 acres along the Worth (40 Acres in Worth)/Mitchell (145.25 Acres in Mitchell) county line sold as a single parcel at an attorney sealed bid auction. The farm had 175.4 crop acres and an average CSR2 of 86.8. It sold for $8,300 per acre to an investment buyer. The buyer was represented by a REALTOR®.
Black Hawk County:
113.54 acres northeast of Waterloo sold for $8,347 per acre. The farm had 108.15 crop acres and a CSR2 of 88.8. The seller was an estate and was represented by a REALTOR®. The buyer was a local farmer.
160 acres located southeast of Holstein sold for $10,100 per acre. The farm had 157.46 crop acres with an average CSR2 of 84.2, which equaled $111/CSR2 point/tillable acre.
236 acres southeast of Hubbard sold in two parcels at auction. Parcel 1 consisted of 116 acres and sold for $8,400 per acre. It had 115 crop acres with a CSR2 of 78.7. This equated to $108/CSR2 point/tillable acre. Parcel 2 consisted of 120 acres and sold for $8,650 per acre. It had 119 crop acres with a CSR2 of 78.5. This equated to $111/CSR2 point/tillable acre. The farm was auctioned and the seller was represented by a REALTOR®.
162 acres east of Eldridge sold for $8,450 per acre at public auction. The farm had 145.1 crop acres with a CSR2 of 78.8. The farm included a machine shed and grain bin. The buyer was a local farmer. The seller was represented by a REALTOR®.
229.48 acres located in Benton Township sold for $2,354 per acre. The farm had 98.97 bottomland crop acres with a CSR2 of 48 and 127.75 acres of timber.
144.8 acres northwest of Osceola sold for $2,470 per gross acre. The farm had a CSR2 of 27. The farm had heavy timber with some open pasture.
80 acres south of Swedesburg sold for $9,050 per acre. The farm had 78.75 acres of cropland with a CSR2 of 85. The farm had 12.41 acres of the cropland in a CRP contract and included a large machine shed.
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.