March 2020 Wallace’s Farmer “MarketPlace Extra”

For many people, the 6+ weeks between February 1st and mid-March can be the longest weeks of the year. The hopeful anticipation of spring’s arrival seems just out of grasp, and the winter weather often just doesn’t quit. In 2019, you may remember that this time period was a real grind, as most of Iowa endured 40”+ of snowfall. Yikes! And after that, Mother Nature just didn’t seem to let up, with several weather-related difficulties to follow. Will 2020 be different? Perhaps. In central Iowa, it was near 50 degrees the weekend of February 1st, so that’s not a bad start!

The 50 degrees was nice…and with each passing day, we are now beginning to see longer daylight hours. Why do we anticipate spring? I believe it is because springtime is when things look new and fresh. Said differently, spring often brings new energy and optimism. With the early architecture of the China deal in place, and President Trump’s signature on the new USMCA agreement, this year the optimism tilts toward the demand-drivers in the grain trade. And with those major agreements in place, the grain markets are beginning to ferret out whether corn or soybeans will be the best choice for 2020 production. This is important because a positive grain market generally supports a stable to stronger farmland market.

But, there are also significant off-setting demand concerns at the present time, including the hangover impact on grain demand from last year’s African Swine Fever decimation of the Asian hog herd, not to mention the more recent global market jitters caused by the Coronavirus. The impact of these two significant issues is not yet completely known, which creates a good deal of negative “motion” in the global marketplace.

In spite of all the motion in the global marketplace, let’s root ourselves in the facts. It is true that we have enjoyed a mostly stable land market here in Iowa, and across the Midwest. Are there wild cards in play? You bet – there are many! Among them are the upcoming U.S. presidential election, global interest rate policy, various ongoing military conflicts across the globe, the further spread of African Swine Fever and Coronavirus, etc. While the wild cards seem endless, I encourage you not to engage or worry, regardless of how the media may try to spin things.  Don’t take the bait. The fact remains that 2020 has started off in such a way that the status quo of stability in the Midwestern farmland market appears rooted in place. The recent sales noted here are a testament to that. So, take a deep breath. By the time you see my next column, the warmth of springtime is likely to be on your face.

NORTHWEST

Dickinson County:

160 +/- acres, located northwest of Terril, recently sold at public auction for $10,425 per acre. The farm consisted of 157 +/- tillable acres with a CSR2 of 85.1, and equaled $125/CSR2 point on the tillable acres.

NORTH CENTRAL

Cerro Gordo County:

55 +/- acres, located near Burchinal, recently sold at public auction for $9,250 per acre. The farm consisted of 52 +/- tillable acres with a CSR2 of 83.8, and equaled $117/CSR2 point on the tillable acres.

NORTHEAST

Black Hawk County:

38 +/- acres, located southeast of Dunkerton, recently sold at public auction for $10,000 per acre. The farm consisted of 38 +/- tillable acres with a CSR2 of 84.8, and equaled $118/CSR2 point on the tillable acres.

WEST CENTRAL

Sac County:

76 +/- acres, located northeast of Sac City, recently sold at public auction for $8,900 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 84.9, and equaled $105/CSR2 point on the tillable acres.

CENTRAL

Story County:

160 +/- acres, located northeast of Cambridge, recently sold at public auction for $8,600 per acre. The farm consisted of 151 +/- tillable acres with a CSR2 of 86.4, and equaled $105/CSR2 point on the tillable acres.

EAST CENTRAL

Jones County:

158 +/- acres, located southwest of Anamosa, recently sold for $11,000 per acre. The farm consisted of 151 +/- tillable acres with a CSR2 of 78.5, and equaled $146/CSR2 point on the tillable acres.

SOUTHWEST

Cass County:

155 +/- acres, located south of Cumberland, recently sold at public auction for $4,500 per acre. The farm consisted of 141 +/- tillable acres with a CSR2 of 54.8, and equaled $90/CSR2 point on the tillable acres. Note: The tillable land on this farm was all enrolled in a CRP contract through September 2025 that pays $236/acre/year.

SOUTH CENTRAL

Appanoose County:                                                                    

120 +/- acres, located west of Walnut City, recently sold at public auction for $5,050 per acre. The farm consisted of 104 +/- tillable acres with a CSR2 of 49.3, and equaled $118/CSR2 point on the tillable acres.

SOUTHEAST

Van Buren County:

80 +/- acres, located north of Stockport, recently sold at public auction for $5,300 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 57.5, and equaled $97/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.