January 2018 Wallace’s Farmer “MarketPlace Extra”
The overall marketplace remains generally stable, although “neighborhood” differences exist. The highest quality farms from a production standpoint (e.g., highly productive soils, solid fertility and drainage, and high ‘farm-ability’) continue to out-perform those farms with poorer soils, waterways or other obstructions. Both local and non-local investor interest in farmland continues to be seen throughout the marketplace. This investor-level interest provides an additional layer of market depth and stability. Finally, interest rates remain very low, which also creates a layer of support in the Iowa farmland market.
That said, low commodity prices and somewhat weak on-farm profitability continue to keep a lid on land values. Additionally, in locales with multiple recent land sales, the use of available capital to buy more land has created the potential for localized price weakness. Pay attention to local areas where several sales are happening, and understand that this may be a marker for potential land price weakness on other upcoming sales in that area. For owners concerned about farmland values dropping in the future, now may be a logical time to consider selling, as it is the heart of the traditional farmland “sales season” (e.g., September to March).
75 +/- acres, located northeast of Boyden, recently sold at public auction for $15,000 per acre. The farm consisted of 73 +/- tillable acres with a CSR2 of 99.9 on primary soil types of Galva and Primghar.
Cerro Gordo County:
160 +/- acres, located near Plymouth, recently sold at public auction for $10,200 per acre. The farm consisted of 159 +/- tillable acres with a CSR2 of 93.4 on primary soil types of Maxfield, Kenyon, Klinger and Dinsdale. The farm had a large grass waterway that cut through the property north to south. Farm sold to an non-local investor.
155 +/- acres, located southwest of Quasqueton, sold for $6,450 per acre. The farm had a CSR2 of 74.5 on 144 +/- tillable acres. The buyer was a local farmer.
116 +/- acres, located northwest of Odebolt, sold for $9,900 per acre. The farm consisted of 112 +/- tillable acres with a CSR2 of 92.7. The buyer was a non-local investor.
74 +/- acres, located in Spring Valley Township, sold for $8,500 per acre. The farm consisted of 73 +/- tillable with a CSR2 of 84.8.
225 +/- acres, located north of West Liberty, recently sold at public auction for $8,950 per acre. The farm consisted of 200 +/- tillable acres with a CSR2 of 80.5. The farm also included an older building site that featured a 2-story home and several outbuildings. The buyer was a local farmer.
210 +/- acres, located west of Mineola, recently sold at public auction. Parcel 1 consisted of 100 +/- acres, with 100 +/- tillable acres and a CSR2 of 81. It sold for $9,250 per acre. Parcel 2 consisted of 110 +/- acres, with 105 +/- tillable acres and a CSR2 of 72.6. It sold for $8,700 per acre.
78 +/- acres, located southwest of Milo, sold for $5,219 per acre. This farm consisted of mostly pasture, ponds and timber; with a whole-farm CSR2 of 40.
76 +/- acres, southwest of Washington, sold at public auction for $12,200 per acre. The farm had 74 +/- tillable acres with an average CSR2 of 85.7. The buyer was a non-local investor.
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.