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Weekly Dirt on Iowa Land Auction Prices - April 1-7, 2016

April 14, 2016 - Setwise Agent


Land auctions in Iowa were down from last week. There were a total of 1,826 acres offered at auction and, of those, there were 1,606 tillable acres. I would describe last week’s auctions results as “stable." A couple of auctions were "soft." 

Some of the highlights: A 157-acre tract sold in Crawford County for $4,250/acre with a CSR/CSR2 55/65. A 214-acre tract sold in Greene County for $5,425/acre with CSR/CSR2 6/66. In Appanoose County, 572 acres sold for $2,464/acre with a CSR/CSR2 of 34/42. A 92-acre tract sold in Webster County for $7,300/acre with CSR/CSR2 74/725. An 80-acre tract in O’Brien County sold for $13,500/acre with a CSR/CSR2 74/95. And an 88-acre recreational tract in Van Buren County sold for a jaw dropping $4,500/acre. 

They were two true “no sales” last week with one farm being in Cedar County and one in Floyd County. The farms are still for sale. We have seen some farms "no sale" in the past couple of weeks. I do think if we continue to see such "no sales" that the market could be weakening. 

As of yet, I think the market is fairly stable, but could be showing some signs of weakening. If anyone is thinking of selling farmland, the sooner you bring it to the market the better. 

Neighborhoods matter when selling farmland. When a farm sells for a high price, the owner of a nearby farm perks up and says, "My farm is better and is worth more." Maybe or maybe not. I recently saw two identical 160-acre tracts auctioned that were across from one another and were divided by a county line. One tract was in a county that is very proactive in expanding livestock production. The other tract was in a county that was trying to stop livestock expansion. The tract in the county that was pro-livestock sold for $900/acre more than the tract that was in a county that was trying to stop the expansion of livestock. 

Again, these two tracts were across from each other and were separated by a county line. With new pork and poultry processing facilities being built in Iowa, I would imagine we will start seeing more aggressive land prices in counties that are pro-livestock, compared with counties that do not want livestock facilities. Neighborhood matters and the reputation of an area plays a role in what a farm will sell for.  

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! 

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

Published in: Land Values