October 2017 Wallace’s Farmer “MarketPlace Extra”
According to the Iowa REALTORS® Land Institute land value survey, average land values across the entire state have increased 2.0% since March 2017, and are 2.9% higher since the September 2016 report. However, the relative strength from neighborhood to neighborhood (or sale to sale) can seem somewhat inconsistent, depending upon the strength of the local neighborhood. As reported in September, land sales activity (the number of farms for sale and sold) is beginning to pick up – as is typical at/around harvest-time. The strongest values continue to be seen in the sale of top-quality farms with the highly productive soils, solid fertility and drainage, and high ‘farm-ability’ (e.g., large and square fields, few point rows, waterways/creeks/obstructions, etc.).
In areas where heavy sales activity has recently occurred, or where drought conditions are impacting 2017 yield results, the potential for sale price weakness is greater, as local capital will be less available (or has already been drawn out of the market). However, investor interest in farmland continues to provide some level of stability to the overall land market, as interest rates remain very low and a there’s a general belief that farmland is a tangible asset and sound overall investment. It is clear that the current land market has somewhat offsetting factors at play, and additional clarity is likely with additional fall land sales results. 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 in any given year occurs following fall harvest.
115 +/- acres, north of Palmer. The farm had 109 +/- crop acres, of which 15+/- acres were enrolled in CRP. The cropland has a CSR2 of 83.5. Farm sold for $7,000 per acre. The farm had primary soil types of Canisteo, Webster, Nicollet and Okoboji. Corn PLC yield was 167 bu. and soybean yield was 54 bu.
160 +/- acres, near Aredale, sold in two parcels. Parcel 1, comprised of 80 +/- acres, sold for $11,200 per acre. The parcel consisted of 76 +/- crop acres with an average CSR2 of 92.1. The sale equaled $129/CSR2 point/crop acre. Parcel 2, comprised of 80 +/- acres, sold for $9,300 per acre. The parcel consisted of 76 +/- crop acres with an average CSR2 of 87.8. The sale equaled $111/CSR2 point/crop acre.
68 +/- acres, southwest of Ionia, sold for $8,063 per acre. The farm had a CSR2 of 82.6 on 62 +/- tillable acres. The Seller was a local farmer and the Buyer was an out-of-state investor.
93 +/- acres, near Carnarvon, sold in two parcels. Parcel 1, comprised of 76 +/- acres, sold for $8,800 per acre. The parcel had 73 +/- crop acres with an average CSR2 of 86.7. The sale equaled $106/CSR2 point/crop acre. Parcel 2, comprised of 17 +/- acres, sold for $8,650 per acre. The parcel consisted of 16 +/- crop acres with an average CSR2 of 83.1. The sale equaled $107/CSR2 point/crop acre.
147 +/- acres, located in Amaqua Township, sold for $8,600/acre. The parcel consisted of 144 +/- crop acres with an average CSR2 of 83.9. The sale equaled $105/CSR2 point/crop acre.
84 +/- acres, west of Tipton, sold for $8,800 per acre. The parcel consisted of 83 +/- crop acres with an average CSR2 of 80.4. The sale equaled $110/CSR2 point/crop acre. Buyer was an investor.
116 +/- acres, near Sharpsburg, sold at public auction for $6,025 per acre. The farm had 114 +/- crop acres with an average CSR2 of 65.6. The buyer was a local farmer. Of note, the Seller had placed a deed restriction on the farm for no hog facilities.
181 +/- acres, southwest of Winterset, sold at public auction for $3,580 per acre. The farm consisted of 98 +/- CRP acres, along with 6 +/- acres of cropland, and the balance in pasture, hay, and 3 ponds. The CSR2 rating on the cropland was 54.8.
Des Moines County:
119 +/- acres, north of Danville, sold for $8,200 per acre. The farm had 113 +/- crop acres with an average CSR2 of 83.5. The primary soils were Taintor and Mahaska. The sale equaled $103/CSR2 point/crop acre.
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.