Peoples Perspective

Finding opportunities to maximize production on each farm while also protecting valuable natural resources is the core business of Peoples Company’s Land Management Team. What makes our work especially rewarding and challenging is that there is no simple solution to guarantee success. Even when a landowner and tenant farmer both want what is best for the farm, they may not see eye to eye on how to get there.

On January 20, 2025, President Donald Trump initiated his second term with a series of executive actions aimed at reshaping U.S. energy policy. These decisions marked a significant departure from the previous administration's focus on renewable energy and climate change mitigation.

Peoples Company continues to lead the way in innovation within the agricultural real estate industry by exploring advanced technologies that enhance efficiency while maintaining the professionalism expected in our appraisal services. As part of this ongoing effort, we are in the testing phase of integrating AI technologies into our workflow. These tools have shown potential to streamline repetitive tasks, improve organization, and ensure precision in reporting. While AI plays a supportive role, the expertise and responsibility of certified appraisers remain central to every valuation.

In the January edition of the Landowner Insights series, Dr. Dave Muth of Peoples Company Capital Markets covers key takeaways from the market over the past year, the regional view of farm incomes for 2025 and potential impacts and uncertainty from policy changes.

Peoples Company, a recognized leader in integrated land management, brokerage, appraisal, and energy solutions with offices across the nation, announced it has acquired Oswego-based Land Pro LLC. Effective on January 1, 2025, Land Pro LLC, its owner Ray Brownfield, and members of the Land Pro LLC staff became an affiliate of Peoples Company, harnessing the technology, expertise and capital markets resources of Peoples Company, while continuing to operate under the Land Pro LLC name. The acquisition grows Peoples Company’s presence in Illinois, having acquired The Atkins Group’s farmland management business and opening an Urbana, Illinois, office in March 2024.

Peoples Company, a recognized leader in integrated land management, brokerage, appraisal, and energy solutions with offices across the nation, today announced it acquired Lincoln-based United Farm and Ranch Management (UFARM). UFARM, a nearly 100-year-old land management company, will add 15 employees and four offices, along with more than 90,000 acres of farm and ranch land under management, to Peoples Company's growing team and portfolio.

Interest in real estate and other alternative or Alt-investments has increased substantially in the past couple of years. Forbes magazine, for example, reported that the share of financial advisors recommending Alts to their clients increased from 25% in 2020 to 55% in 2024 (Fred Hubler, 9/10/2024). Among these, agricultural real estate has stood out because of the understood positive correlation with inflation, low correlation with equity returns, and low risk of capital loss with relatively consistent income.

Peoples Company tracks agricultural auctions across the state of Iowa. From this data, we calculate the average dollar per CSR2 point ($/CSR2) for sales of tracts with greater than 85% tillable land. Additionally, these tracts are largely unimproved or include minimal improvement contribution.

The appraisal team at Peoples Company was able to track 90 tracts or 8,791 acres sold at public auction in Iowa during December 2024. The average dollar per acre was $11,076, the average dollar per tillable acre was $12,329, and the average dollar per CSR2 was $175.

When contemplating whether or not they are ready to sell a farm, one of the first questions a landowner will likely have is: “Should I list or auction my farm?” It’s a crucial decision that can significantly impact their financial future. As we close out 2024 and set our sights on 2025, understanding the pros and cons of each selling method is vital for making an informed choice. As a land professional that specializes in brokerage and auctions, I’m here to guide you through the options available, helping you determine the best path for your unique situation.