August 2021 Wallace’s Farmer “MarketPlace Extra”

Doug Hensley, President of Hertz Real Estate Services

Wow. The dog days are upon us, and I wonder if I am the only one asking, “where is this summer going?” To me, it seems like planting season just started! But now, here we are with this crop already through the heart of pollination. And if I blink my eyes one more time, we are going to see combines and grain trucks starting harvest operations. It has been that kind of summer.

The same can be said about the Iowa (and Midwestern) land market. The strength, and excitement, in the rural countryside has been unlike any I’ve previously experienced. Some of the folks I have talked to have been more focused on the volatility in the grain markets, while many others have been more interested in talking about the new ‘high-water’ mark for a recent area land sale. Regardless of whether we are talking about the grain or land markets, both have required a strong stomach. Compared to recent years for both markets, the ride has been wild. As I’ve mentioned multiple times in this column, profitable grain prices, low interest rates, and limited land sales inventory have been the drivers that got us to this point in the land market. And now, with the obvious shift higher in farmland values over the past 6-12 months, we’ve just started to see more inventory come to the market. Thus far, there have not been enough farmland sales to sop up the demand that existed for land… but at some point, if enough inventory comes forward, it certainly could.

And we also cannot forget that to be profitable, we still need to grow a crop! Much of the state of Iowa has thus far been limping through the summer on less-than-ideal moisture conditions. I think we all know that some areas have been suffering from legitimate drought conditions for several months now, especially in western and northwestern Iowa. In fact, there is a growing concern in some parts of Iowa for the viability of an average crop. But, looking at these land sales results that follow, you would never know it. As the “Oldtimers” say, I guess you buy the farm when it’s available, not necessarily when it is convenient.

NORTHWEST

Osceola County:

150 +/- acres, located northwest of Sibley, recently sold at public auction for $15,000 per acre. The farm consisted of 143 +/- tillable acres with a CSR2 of 95.5, and equaled $165/CSR2 point on the tillable acres.

NORTH CENTRAL

Floyd County:

79 +/- acres, located near Rudd, recently sold at public auction for $12,275 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 90.6, and equaled $141/CSR2 point on the tillable acres.

NORTHEAST

Allamakee County:

135 +/- acres, located south of Waukon, recently sold at public auction for $6,200 per acre. The farm consisted of 123 +/- tillable acres with a CSR2 of 47.6, and equaled $143/CSR2 point on the tillable acres.

WEST CENTRAL

Greene County:

80 +/- acres, located north of Bagley, recently sold at public auction for $14,400 per acre. The farm consisted of 75 +/- tillable acres with a CSR2 of 88.6, and equaled $173/CSR2 point on the tillable acres.

CENTRAL

Hardin County:

80 +/- acres, located north of Radcliffe, recently sold at public auction for $14,300 per acre. The farm consisted of 78 +/- tillable acres with a CSR2 of 85.4, and equaled $172/CSR2 point on the tillable acres.

EAST CENTRAL

Benton County:

74 +/- acres, located northwest of Urbana, recently sold for $11,650 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 86.2, and equaled $135/CSR2 point on the tillable acres.

SOUTHWEST

Fremont County:

187 +/- acres, located northwest of Sidney, recently sold at public auction for $4,750 per acre. The farm consisted of 149 +/- tillable acres with a CSR2 of 59.1, and equaled $101/CSR2 point on the tillable acres.

SOUTH CENTRAL

Union County:                                                                              

115 +/- acres, located southwest of Afton, recently sold for $4,939 per acre. The farm consisted of 100 +/- tillable acres with a CSR2 of 59.5, and equaled $95/CSR2 point on the tillable acres.

SOUTHEAST

Wapello County:

41 +/- acres, located east of Agency, recently sold for $9,146 per acre. The farm consisted of 41 +/- tillable acres, with a CSR2 of 83.0, and equaled $110/CSR2 point on the tillable acres.

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.