Land Values Blogs

As inflation rates continue to rise in the United States, investors have renewed interest in alternative investment opportunities that can outperform traditional asset classes without sacrificing stability. In 2021, The Land Report named Bill Gates as the top private farmland owner in America, since then investors of all sizes and backgrounds have flocked to the agricultural sector.

The appraisal team at Peoples Company was able to track 37 tracts or 3,711 acres sold at public auction in Iowa during May 2024. The average dollar per acre was $11,238, the average dollar per tillable acre was $12,604, and the average dollar per CSR2 was $165.

The appraisal team at Peoples Company was able to track 50 tracts or 3,514.48 acres sold at public auction in Iowa during April 2024. The average dollar per acre was $10,852, the average dollar per tillable acre was $13,624, and the average dollar per CSR2 was $181.

At Peoples Company, the question that is heard daily up and down the halls is a simple yet pivotal one: “What is happening in the land market?” In recent years, the answer has been straightforward - an upward trajectory.

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.

In 2021 the U.S. rejoined The Paris Agreement, a legally binding international treaty on climate change, and published “The Long-Term Strategy of the United States, Pathways to Net-Zero Greenhouse Gas Emissions by 2050 [1]. Net zero refers to a balance between the amount of greenhouse gas (GHG) that is produced and the amount of GHG removed from the atmosphere. Agriculture accounts for approximately 10% of total GHG emissions in the U.S. [2].

The appraisal team at Peoples Company was able to track 82 tracts or 6,803.16 acres sold at public auction in Iowa during March 2024. The average dollar per acre was $11,316, the average dollar per tillable acre was $13,574, and the average dollar per CSR2 was $174.

The appraisal team at Peoples Company was able to track 85 tracts or 7,064.51 acres sold at public auction in Iowa during February 2024. The average dollar per acre was $13,389, the average dollar per tillable acre was $14,935, and the average dollar per CSR2 was $185.

The appraisal team at Peoples Company was able to track 40 tracts or 3,868.91 acres sold at public auction in Iowa during January 2024. The average dollar per acre was $12,060, the average dollar per tillable acre was $14,071, and the average dollar per CSR2 was $183.

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.