September 2017 Wallace’s Farmer “MarektPlace Extra”
In those locales where multiple land sales have occurred, or where drought is 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 is stable to increasing, thereby supporting land values. The stabilization in the farmland market and increase in interest from investors 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.
These positive market factors are countered by slightly increasing interest rates and ongoing pressure in commodity prices. 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 occur following fall harvest.
73 acres, south of Sheldon, sold at public auction. The farm had 71.6 tillable acres and a CSR2 of 94.1. It sold for $13,700 per acre. The farm had primary soil types of Galva, Marcus, Primghar and Afton. Corn PLC yield was 182 bu. and soybean yield was 56 bu.
139 acres, near Marble Rock, sold in two parcels. Parcel 1, comprised of 76 acres, sold for $7,650 per acre. The parcel consisted of 76 crop acres with an average CSR2 of 71.4. The sale equaled $107/CSR2 point/crop acre. Parcel 2, comprised of 63 acres, sold for $7,650 per acre. The parcel consisted of 62.6 crop acres with an average CSR2 of 72.9. The sale equaled $105/CSR2 point/crop acre.
Black Hawk County:
79 acres, south of Dunkerton, sold for $10,150 per acre. The farm had a CSR2 of 86.3 on 79 tillable acres. The Seller was a local farm family and the Buyer was an out-of-state investor.
160 acres, northwest of Odebolt, sold for $8,125 per acre. The farm consisted of 133.8 cropland acres, and 13.1 CRP acres, with an average CSR2 of 88 on the tillable cropland acres. The sale equaled $110/CSR2 point/crop acre or $9,715/tillable cropland acre.
79 acres, located in Pleasant Valley Township, sold for $8,950/acre. The farm consisted of 74.85 crop acres with an average CSR2 of 82.8. The sale equaled $115/CSR2 point/crop acre or $9,490/tillable cropland acre.
80 acres, southwest of Troy Mills, sold for $8,375 per acre. The farm consisted of 74.8 crop acres with an average CSR2 of 80.5. The sale equaled $111/CSR2 point/crop acre or $8,957/tillable cropland acre. Buyer was an investor.
110 acres, north of New Market, sold at public auction for $3,560 per acre. The farm had 54.3 crop acres with an average CSR2 of 64.9. Balance of the farm, 55 acres, was in pasture.
59.5 acres, north of Pella, sold at public auction for $10,900 per acre. The farm consisted of 58.5 crop acres with an average CSR2 of 84. The sale equaled $132/CSR2 point/crop acre or $11,086/tillable cropland acre.
40.6 acres, northeast of South English, sold for $4,926 per acre. The farm had 37.3 crop acres with an average CSR2 of 81.9, of which 37.05 acres were enrolled under 3 separate CRP contracts with $9,159 in annual income.
Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. All acres are considered “more or less” unless otherwise noted. Call Hertz at 515-382-1500/800-593-5263 or visit www.Hertz.ag.