Land Values Blogs

The appraisal team at Peoples Company was able to track 52 tracts or 5,039 acres sold at public auction in Iowa during August 2024. The average dollar per acre was $13,134, the average dollar per tillable acre was $14,862, and the average dollar per CSR2 was $181.

When we think of investment vehicles, our minds often drift to stocks, bonds, or commercial and residential real estate. But there’s an investment class that doesn’t always get the spotlight it deserves: farmland. Beyond its basic value as a commodity, farmland offers a range of unique benefits and hidden opportunities that set it apart from more traditional investments. Here’s why farmland is worthy of consideration for your diversified portfolio.

The appraisal team at Peoples Company was able to track 35 tracts or 2,754 acres sold at public auction in Iowa during July 2024. The average dollar per acre was $10,669, the average dollar per tillable acre was $13,495, and the average dollar per CSR2 was $178.

For our next webinar in the Landowner Insights series, Kyle Walker joins Dr. Dave Muth and Steve Bruere to discuss Peoples Company's approach to managing farmland. This session will highlight our comprehensive strategies aimed at maximizing appreciation and ensuring long-term value growth.

In the realm of agricultural lending, the process of appraisal holds significant weight. It's not just about assessing the monetary value of land and assets; it's about understanding the intricacies of farming practices, environmental impacts, and the overall sustainability of agricultural operations. Agricultural appraisal ensures that lenders can make informed decisions while offering financial support to farmers, fostering growth in rural economies, and ensuring food security.

Investing in farmland with a cash yield of only 2.5% might seem less attractive when current treasuries yield 5% or more. However, several strategic reasons exist to consider farmland a valuable addition to your investment portfolio. This article will explore these reasons, including inflation hedging, portfolio diversification, long-term appreciation, and other benefits that make farmland a compelling investment.

California has long been the United States’ most significant agricultural producer in terms of crop diversity and total crop value – its ag exports alone are worth more than the total production of 44 states and California is the only state that generates over 10% of America’s agricultural receipts.

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 87 tracts or 7,243 acres sold at public auction in Iowa during June 2024. The average dollar per acre was $11,298, the average dollar per tillable acre was $13,538, and the average dollar per CSR2 was $168.

Please join Peoples Company for a Landowner Insights webinar where Dr. Dave Muth will help farmland owners analyze how these trends will impact asset values and examine the opportunities these new policies create for value-added management practices.