January 2023 Wallace’s Farmer “MarketPlace Extra”
Every time I turn the calendar to a new year, I think to myself, “How’d that happen so quickly?” You probably feel the same. As I’ve been reflecting on the past year, I’m finding there are parallels in that question for many things in our life, including where we find the current Iowa farmland market. Over the past couple years, the market has changed quickly.
Think back to January 2020, just after the new NAFTA and the China trade deal were put together. Before COVID. Before 2 contentious elections. Before corn was $5, $6, or $7/bushel. As the calendar turned to 2020, quality Iowa farmland could fetch $10,000/acre, but it was pretty rare to see a sale at or above $12,000+/acre. In fact, it was common to see good land bring $7,000 or $9,000/acre across much of the northern half of Iowa. How did the farmland market manage to shift so quickly?
Lots of factors played into both the positive direction, and the velocity behind the change, in the land market in Iowa and across the Midwest. Global grain demand pushed commodity prices to new higher levels. Low interest rates have supported asset values. Political instability worldwide kept U.S. agriculture in an important production position. And, inflation in our general economy resurfaced in a major way, which has historically correlated positively for land values. Can the strength in land values continue? Recent sale results indicate so. However, stay tuned throughout 2023. If the factors that drove prices higher begin to shift, it is probable that the market will continue to change.
NORTHWEST
Buena Vista County:
138 +/- acres, located east of Alta, recently sold at public auction for $19,000 per acre. The farm consisted of 134 +/- tillable acres with a CSR2 of 95.0, and equaled $206/CSR2 point on the tillable acres.
NORTH CENTRAL
Franklin County:
76 +/- acres, located near Hampton, recently sold at public auction for $7,600 per acre. The farm consisted of 71 +/- tillable acres with a CSR2 of 62.5, and equaled $130/CSR2 point on the tillable acres.
NORTHEAST
Delaware County:
112 +/- acres, located southwest of Manchester, recently sold for $19,600 per acre. The farm consisted of 111 +/- tillable acres with a CSR2 of 88.0, and equaled $224/CSR2 point on the tillable acres.
WEST CENTRAL
Sac County:
111 +/- acres, located east of Carnarvon, recently sold at public auction for $17,100 per acre. The farm consisted of 105 +/- tillable acres with a CSR2 of 88.6, and equaled $204/CSR2 point on the tillable acres.
CENTRAL
Jasper County:
156 +/- acres, located northwest of Monroe, recently sold at public auction for $17,200 per acre. The farm consisted of 156 +/- tillable acres with a CSR2 of 88.3, and equaled $195/CSR2 point on the tillable acres.
EAST CENTRAL
Muscatine County:
104 +/- acres, located west of Fruitland, recently sold at public auction for $11,600 per acre. The farm consisted of 100 +/- tillable acres with a CSR2 of 81.1, and equaled $149/CSR2 point on the tillable acres.
SOUTHWEST
Pottawattamie County:
120 +/- acres, located northwest of Neola, recently sold via a one-chance sealed bid sale for $12,875 per acre. The farm consisted of 117 +/- tillable acres with a CSR2 of 55.5, and equaled $237/CSR2 point on the tillable acres.
SOUTH CENTRAL
Appanoose County:
80 +/- acres, located northeast of Seymour, recently sold at public auction for $7,450 per acre. The farm consisted of 70 +/- tillable acres with a CSR2 of 48.4, and equaled $175/CSR2 point on the tillable acres.
SOUTHEAST
Keokuk County:
72 +/- acres, located east of What Cheer, recently sold at public auction for $9,950 per acre. The farm consisted of 57 +/- tillable acres with a CSR2 of 79.5, and equaled $158/CSR2 point on the tillable acres. The balance of the farm was in wooded draws and CRP.
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.
