May 2021 Wallace’s Farmer “MarketPlace Extra”

Planting season is once again upon us. In comparison to the great COVID-inspired uncertainty that blanketed the farmland market during the 2020 planting season, the current farmland market is focused on a shift higher, with broad strength, depth, and resiliency. There are several reasons for this market-wide strength: Multi-year highs in commodity prices, still low-interest rates, strong investor demand, limited farms for sale, and ongoing government support (e.g., CFAP 3 payments moved forward in late March), all continue to provide the combination of ingredients needed to fuel the market moving higher.

Yet, there are many questions to be answered in the coming months. These questions specifically include how tax policies may change – for capital gains, estate-related policies, and tax rates for individuals and corporations alike. Each of these policy areas is sure to impact agriculture. But nothing has yet changed significantly enough to move the market off its current course. So, for now, I am generally optimistic about land values in 2021. The sales detailed below show just how much energy there is in the current farmland market. 

NORTHWEST

Clay County:

152 +/- acres, located northeast of Spencer, recently sold at public auction for $11,500 per acre. The farm consisted of 148 +/- tillable acres with a CSR2 of 85.1, and equaled $139/CSR2 point on the tillable acres.

NORTH CENTRAL

Kossuth County:

165 +/- acres, located near Burt, recently sold at public auction for $11,200 per acre. The farm consisted of 154 +/- tillable acres with a CSR2 of 78.8, and equaled $152/CSR2 point on the tillable acres.

NORTHEAST

Buchanan County:

80 +/- acres, located northeast of Independence, recently sold at public auction for $12,100 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 82.2, and equaled $155/CSR2 point on the tillable acres.

WEST CENTRAL

Monona County:

116 +/- acres, located southeast of Moorhead, recently sold at public auction for $7,575 per acre. The farm consisted of 102 +/- tillable acres with a CSR2 of 47.7, and equaled $180/CSR2 point on the tillable acres.

CENTRAL

Boone County:

195 +/- acres, located near Boone, recently sold at public auction for $11,900 per acre. The farm consisted of 194 +/- tillable acres with a CSR2 of 87.4, and equaled $137/CSR2 point on the tillable acres.

EAST CENTRAL

Linn County:

60 +/- acres, located east of Ely, recently sold for $7,100 per acre. The farm consisted of 58 +/- tillable acres with a CSR2 of 55.9, and equaled $131/CSR2 point on the tillable acres.

SOUTHWEST

Montgomery County:

123 +/- acres, located south of Stanton, recently sold at public auction for $4,900 per acre. The farm consisted of 94 +/- tillable acres with a CSR2 of 65.9, and equaled $98/CSR2 point on the tillable acres. Note: 83 +/- acres of the tillable cropland was enrolled in CRP with an annual payment of $250/acre through 9/30/2025.

SOUTH CENTRAL

Madison County:                                                                         

174 +/- acres, located south of Dexter, recently sold for $5,827 per acre. The farm consisted of 123 +/- tillable acres with a CSR2 of 61.5, and equaled $134/CSR2 point on the tillable acres. Note: The balance of the farm was in pasture.

SOUTHEAST

Jefferson County:

39 +/- acres, located north near Pleasant Plain, recently sold at a virtual online auction for $10,100 per acre. The farm consisted of 38 +/- tillable acres, with a CSR2 of 85.0, and equaled $122/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.