Greetings! Land auctions in Iowa picked up from last week. There were a total of 2,610 acres offered at auction. Of those acres, there were 1,597 tillable acres. I would describe last week’s auctions results as "stable."

Some of the highlights: A 160-acre tract in Grundy County sold for $9,150/acre with a CSR/CSR2 of 82/87. In Wappello County, 600 acres in five tracts sold for $9,400/acre with a CSR/CSR2 of 81/81, $8,100/acre with a CSR/CSR2 of 88/84, $8,700/acre with a CSR/CSR2 of 79/83, $10,800/acre with a CSR/CSR2 of 87/84, and $11,200/acre with a CSR/CSR2 of 81/82. 

Four Missouri River Bottom tracts sold in Fremont County for $6,800/acre with a CSR/CSR2 of 82/87, $6,200/acre with a CSR/CSR2 of 88/96, $6,100/acre with a CSR/CSR2 of 83/89, and $4,300/acre with a CSR/CSR2 of 66/72. In Ringgold County, a 160-acre pasture farm sold for $2,600/acre. There was one true “no sale” last week in Black Hawk County with the farm still being for sale.  

There are still plenty of negatives about cash rents, net farm income, and negative cash flows. The land market is holding up remarkably well in Iowa. I recently talked to a Realtor, and he said something that I would agree with: “If you know anyone thinking of selling a farm, they need to bring it to the market. The sooner the better.” 

As balance sheets start to be affected by lower farm income, land prices will adjust downward as well. Nobody can predict what’s ahead, but the reality is we will see some adjustment to current grain prices and net farm income. Please check back next week to see what I will be discussing. 

Please check out our February auction results.  Please make sure and hit the “like” button on Facebook.

Talk to you soon! 

Thanks.

Jim Rothermich, The Land Talker
Certified General Appraiser
Peoples Company Appraisal Team