September 2023 Wallace’s Farmer “MarketPlace Extra”

I feel a little like a broken record, but the farmland market across Iowa remains stable, ballasted by offsetting factors. Commodity prices have been a rollercoaster this summer, albeit with profitable selling windows, while generally grinding lower, and interest rates are roughly double what they were 12-18 months ago. However, these pressures are being offset by the expectation that we have a crop developing with big bushel potential, which is supporting market confidence and foreshadowing reasonable profits in 2023, even if less than record profit levels in 2022. In addition, early bids from suppliers for anhydrous and fertilizer inputs for the 2024 growing season are substantially reduced from levels paid for 2023 crop inputs, which is also supportive to confidence and forward-looking profit potential.  So, the offsetting factors leave the land market to generally chop sideways.

NORTHWEST

Clay County:

160 +/- acres, located northwest of Webb, recently sold at public auction for $13,700 per acre. The farm consisted of 150 +/- tillable acres with a CSR2 of 86.2, and equaled $170/CSR2 point on the tillable acres. Note: the tillable land was divided by a drainage ditch.

NORTH CENTRAL

Cerro Gordo County:

121 +/- acres, located near Dougherty, recently sold at public auction for $15,900 per acre. The farm consisted of 116 +/- tillable acres with a CSR2 of 83.8, and equaled $198/CSR2 point on the tillable acres.

NORTHEAST

Black Hawk County:

77 +/- acres, located west of Cedar Falls, recently sold at public auction for $19,400 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 92.4, and equaled $210/CSR2 point on the tillable acres.

WEST CENTRAL

Crawford County:

67 +/- acres, located south of Denison, recently sold at public auction for $13,600 per acre. The farm consisted of 67 +/- tillable acres with a CSR2 of 73.9, and equaled $184/CSR2 point on the tillable acres.

CENTRAL

Story County:

80 +/- acres, located north of Colo, recently sold at public auction for $17,100 per acre. The farm consisted of 75 +/- tillable acres with a CSR2 of 88.5, and equaled $206/CSR2 point on the tillable acres.

EAST CENTRAL

Linn County:

40 +/- acres, located east of Marion, recently sold for $17,500 per acre. The farm consisted of 38 +/- tillable acres with a CSR2 of 87.0, and equaled $212/CSR2 point on the tillable acres.

SOUTHWEST

Adams County:

233 +/- acres, located north of Nodaway, recently sold for $5,750 per acre. The farm consisted of 196 +/- tillable acres with a CSR2 of 57.0, and equaled $120/CSR2 point on the tillable acres.  Note: The balance of the farm was in timber draws, waterways, terraces, and ponds.

SOUTH CENTRAL

Marion County:

90 +/- acres, located east of Hamilton, recently sold for $6,555 per acre. The farm consisted of 84 +/- tillable acres with a CSR2 of 59.9, and equaled $117/CSR2 point on the tillable acres.  

SOUTHEAST

Jefferson County:

79 +/- acres, located east of Fairfield, recently sold at public auction for $9,000 per acre. The farm consisted of 66 +/- tillable acres with a CSR2 of 75.6, and equaled $142/CSR2 point on the tillable acres. Note: The balance of the farm was in waterways, trees, and a pond.

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. 

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