March 2017 Wallace’s Farmer “MarketPlace Extra”
Iowa farms harvested record-high corn and soybean yields in 2016. The high yields, a partial recovery in commodity prices, plus ARC County farm program payments received last fall, 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.
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. Borrowing interest rates have increased by about 1 percent.
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.
97.93 acres located southeast of Larchwood sold at public auction. The farm had 94 crop acres and a CSR2 of 68.8. Primary soils were Moody, Trent, Ackmore, Colo and Marcus. The farm PLC corn yield was 186 and the soybean yield was 51. It sold for $12,400 per acre. The farm was auctioned and the seller was represented by a REALTOR®.
160 acres located 4.5 miles south of Buffalo Center sold at public auction. The farm had 153 crop acres with an average CSR2 of 80.5. The farm sold for $8,600 per acre to an investor-landowner. The auction was conducted by a REALTOR®.
147.43 acres located southwest of Waucoma sold at public auction in two parcels for $8,347 per acre. Parcel 1 had 39 acres with a CSR2 of 55.4 on 38.31 tillable acres. Parcel 2 had 108.43 acres with a CSR2 of 65.4. The seller was an estate and was represented by a REALTOR®. The buyer was a local farmer.
300 acres located west of Ida Grove sold in three parcels. Parcel 1, which had 90 acres, 83.5 crop acres and a CSR2 of 79.4, sold for $9,050 per acre or $123/CSR2 point per crop acre. Parcel 2 had 79 acres, 78.5 crop acres and a CSR2 of 52.6. It sold for $5,200 per acre or $99/CSR2 point per crop acre. Parcel 3, which had 131 acres, 129.8 crop acres and a CSR2 of 62.2, sold for $7,550 per acre or $122/CSR2 point per crop acre.
155 acres located in Lost Grove Township sold in two parcels at auction. Parcel 1 consisted of 80 acres and sold for $9,000 per acre. It had 79 crop acres with a CSR2 of 83 and equated to a sale of $110/CSR2 point per crop acre. Parcel 2 consisted of 75 acres and sold for $7,700 per acre. It had 70.9 crop acres with a CSR2 of 81.9. This equated to $99/CSR2 point per tillable acre. The seller was represented by a REALTOR®.
153 acres north of Blue Grass sold for $7,050 per acre at public auction. The farm had 137.2 crop acres with a CSR2 of 72.1. The remainder of the farm included CRP, waterways and a grain bin. The buyer was a local farmer. The seller was an estate, represented by a REALTOR®.
230 acres located northeast of Hamburg sold for $4,800 per acre. The farm had 184.51 crop acres with a CSR2 of 71.1. This equates to $84.19/CSR2 point per crop acre.
80 acres northeast of Milo sold for $3,797 per gross acre. The farm had 59.4 tillable acres and a CSR2 of 47.7. The farm included 15 acres of timber.
81.82 acres north of Mount Union sold at public auction for $10,100 per acre. The farm had 80 acres of cropland with a CSR2 of 90.
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.