June 2022 Wallace’s Farmer “MarketPlace Extra”
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As I look out the window here while I write this article in early May, I see gray skies, rain puddles, and a guy walking by wearing a heavy winter jacket. The calendar may say spring planting has arrived, but it’s been unseasonably cold and wet into early May. It hasn’t been this way for a few years, as we’ve been spoiled in 2020 and 2021 with smooth planting weather. But every year is different, and this twist of 2022 is just Mother Nature’s way of reminding us of who is in control.
Another thing that “hasn’t been this way” for a while, is the reality of higher interest rates. As I’ve reported here in the past couple months, in mid-March the Federal Reserve started raising bank-lending rates, with a quarter-point move higher. And now, in early May, they did it again – only this time, it was a half-point increase, with post-meeting messaging that says more interest rate increases are on the way. Some market watchers are speculating we may see as many as 5 additional rate increases between now and year-end. The rate increases are designed to slow down our economy enough that 40+ year high inflation readings are brought back under some semblance of control.
What does this mean for the farmland market? So far, the positive influence from higher grain prices have out-paced the negative influence from a higher interest rate environment. But, at some point that may not be the case. As we get into the summer months, this push-pull dynamic will certainly be worth watching. For now, Iowa land sales have been much warmer than the early-May weather, as reflected in the recent sale examples that follow from across the State of Iowa.
NORTHWEST
Sioux County:
125 +/- acres, located east of Hospers, recently sold at public auction for $22,100 per acre. The farm consisted of 122 +/- tillable acres with a CSR2 of 93.0, and equaled $243/CSR2 point on the tillable acres.
NORTH CENTRAL
Mitchell County:
151 +/- acres, located near Toeterville, recently sold for $15,000 per acre. The farm consisted of 148 +/- tillable acres with a CSR2 of 88.0, and equaled $174/CSR2 point on the tillable acres.
NORTHEAST
Buchanan County:
60 +/- acres, located south of Rowley, recently sold at public auction for $10,300 per acre. The farm consisted of 52.1 +/- tillable acres with a CSR2 of 71.2, and equaled $167/CSR2 point on the tillable acres.
WEST CENTRAL
Greene County:
160 +/- acres, located southeast of Paton, recently sold at public auction for $14,050 per acre. The farm consisted of 157.7 +/- tillable acres with a CSR2 of 85.4, and equaled $167/CSR2 point on the tillable acres.
CENTRAL
Story County:
154 +/- acres, located west of Huxley, recently sold at public auction for $14,700 per acre. The farm consisted of 140.3 +/- tillable acres with a CSR2 of 79.4, and equaled $203/CSR2 point on the tillable acres.
EAST CENTRAL
Linn County:
90 +/- acres, located south of Martelle, recently sold for $13,900 per acre. The farm consisted of 87.4 +/- tillable acres with a CSR2 of 77.2, and equaled $185/CSR2 point on the tillable acres.
SOUTHWEST
Pottawattamie County:
307 +/- acres, located east of Oakland, recently sold at public auction for $12,200 per acre. The farm consisted of 285.9 +/- tillable acres with a CSR2 of 77.6, and equaled $169/CSR2 point on the tillable acres.
SOUTH CENTRAL
Decatur County:
279 +/- acres, located north of Lamoni, recently sold at online auction for $5,900 per acre. The farm consisted of 223 +/- tillable acres with a CSR2 of 64.1, and equaled $115/CSR2 point on the tillable acres. Note: The non-tillable land was primarily pasture acres.
SOUTHEAST
Keokuk County:
145 +/- acres, located west of Sigourney, recently sold at online auction for $10,000 per acre. The farm consisted of 136 +/- tillable acres with a CSR2 of 69.2, and equaled $154/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.
