December 2023 Wallace’s Farmer “MarketPlace Extra”

The Market is Not Weak

Fall harvest is complete, and year-end is rapidly approaching. While most of Iowa struggled through drought conditions this summer, harvest somehow produced pleasantly surprising results in more areas than expected. Generally solid yields will support stable rents for 2024.  And most operations will have profits from 2023, albeit smaller than the past couple of years.

As for the farmland market, I’ll look back on the year as one of transition. The record-setting sales and huge sale volumes of 2022 have both leveled off this year. However, the market is not weak. Several land value surveys reflect a “plateau-effect” that is not all that surprising, given current conditions (e.g., higher interest rates, thinner profit margins on an average crop, uncertain geo-political conditions, etc.). In my mind, prospective land buyers simply seem to be playing their cards a bit more conservatively than a year-ago. As the sales below evidence, there’s still an appetite to be aggressive for the right piece of land – however, not every piece of land makes the cut.

NORTHWEST

O’Brien County:

78 +/- acres, located northeast of Primghar, recently sold at public auction for $16,500 per acre. The farm consisted of 70 +/- tillable acres with a CSR2 of 95.9, and equaled $192/CSR2 point on the tillable acres. Note: This farm also included a wind turbine for additional income.

NORTH CENTRAL

Franklin County:

148 +/- acres, located near Chapin, recently sold at public auction for $13,300 per acre. The farm consisted of 133 +/- tillable acres with a CSR2 of 84.5, and equaled $175/CSR2 point on the tillable acres.

NORTHEAST

Black Hawk County:

90 +/- acres, located southwest of Hudson, recently sold at public auction for $14,200 per acre. The farm consisted of 89 +/- tillable acres with a CSR2 of 88.1, and equaled $163/CSR2 point on the tillable acres.

WEST CENTRAL

Greene County:

80 +/- acres, located northwest of Grand Junction, recently sold at public auction for $13,000 per acre. The farm consisted of 78 +/- tillable acres with a CSR2 of 85.6, and equaled $156/CSR2 point on the tillable acres.

CENTRAL

Marshall County:

77 +/- acres, located east of Liscomb, recently sold at public auction for $21,300 per acre. The farm consisted of 73 +/- tillable acres with a CSR2 of 94.4, and equaled $238/CSR2 point on the tillable acres.

EAST CENTRAL

Clinton County:

72 +/- acres, located southeast of Dewitt, recently sold for $12,691 per acre. The farm consisted of 72 +/- tillable acres with a CSR2 of 70.0, and equaled $181/CSR2 point on the tillable acres.

SOUTHWEST

Pottawattamie County:

135 +/- acres, located southeast of McClelland, recently sold at public auction for $10,600 per acre. The farm consisted of 133 +/- tillable acres, with a CSR2 of 74.7, and equaled $144/CSR2 point on the tillable acres.

SOUTH CENTRAL

Warren County:

100 +/- acres, located northeast of Milo, recently sold at public auction for $13,400 per acre. The farm consisted of 91 +/- tillable acres with a CSR2 of 80.4, and equaled $183/CSR2 point on the tillable acres.

 
SOUTHEAST

Jefferson County:

100 +/- acres, located north of Fairfield, recently sold at public auction for $16,900 per acre. The farm consisted of 99 +/- tillable acres with a CSR2 of 80.8, and equaled $211/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. 

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