Market Sees Offerings Trending Toward Private Treaties

June 27, 2024

Article from Summer 2024 Hertz Outlook Newsletter

IOWA

150.00 acres in Benton Co., IA, located north of Keystone, sold via private treaty in mid-February. The farm had 142.64 tillable acres with a CSR2 rating of 92.50. There were 3.40 acres enrolled in CRP contracts. Farm sold to a farmer-buyer at $16,667/Ac., or $189.48/CSR2 point/tillable acre.

237.20 acres in Hamilton Co., IA, located east of Stratford, sold in 3 parcels via Hybrid auction in early-April. Parcel 1, consisting of 80 acres with 77.46 tillable acres and CSR2 of 81.80, as well as a wind turbine, sold for $15,000/Ac. ($196.96/CSR2 point/tillable acre). Parcel 2 had 77.20 total acre with 76.75 acres all enrolled in CRP contracts. CSR2 on the CRP ground was 74.00. It sold for $8,600/Ac. ($116.90/ CSR2 point/tillable acre). Parcel 3 was also 80 total acres with 75.79 tillable acres and a CSR2 rating of 84.40. It sold for $12,200/Ac. ($152.12/CSR2 point/tillable acre). All three parcels sold to a local farmer.

100.00 acres in Clinton Co., IA, located partially in the City Limits of Lost Nation, sold via private treaty in mid-April. This property had 94.69 tillable acres with a CSR2 rating of 84.70 and potential for a building site. There were some older bins and a windmill onsite. Farm sold for $15,000/Ac., or $187.03/ CSR2 point/tillable acre, to a non-local investor.

ILLINOIS

294.32 acres in DeKalb Co., IL, located west of Sycamore, sold via private treaty in late-April. This property had 285.59 tillable acres with a PI rating of 138.30 and sold for $15,970/ Ac. ($119.00/PI point/tillable acre) to non-local investor.

257.04 acres in Macon Co., IL, located east of Maroa, was offered in 3 parcels via Hybrid auction in late-March. Parcel 1 had 78.86 total acres with 77.79 estimated tillable acres and a PI rating of 141.90. Parcel 2 had 80.00 total acres with 80.00 estimated tillable acres and a PI rating of 135.50. Parcel 3 had 80 total acres with 98.18 estimated tillable acres and PI rating of 140.20. Parcels 1 and 2 sold together for $17,200/ Ac., or $124.85/PI point/tillable acre to a non-local investor. Parcel 3 sold for $18,300/Ac., or $130.53/PI point/tillable acre to a non-local investor completing a 1031-Exchange.

MINNESOTA

231.98 acres in Watonwan Co., MN located west of Lewisville, sold via In-Person auction in late-January in 2 parcels. Parcel 1 consisted of 80.00 total acres with 77.80 tillable acres and a CPI rating of 91.20. Parcel 2 had 151.98 acres with 145.70 tillable acres and CPI rating of 91.10. Parcel 1 sold for $11,400/Ac. ($128.53/CPI point/tillable acre). Parcel 2 sold for $11,300/Ac. ($129.39/CPI point/tillable acre). Both parcels sold to a local farmer.

58.29 acres in Dakota Co., MN, located south of Miesville, sold at an In-Person auction in mid-April. This farm had 54.00 tillable acres with a CPI rating of 71.90 and came with two building rights to the property and was adjacent to a local golf course. Property sold for $12,700/Ac., or $190.67/CPI point/ tillable acre, to a non-local investor.