How The Government Shutdown Affects Land Prices

Jan 22, 2019 | Farmland Prices, Land Seller Resources

Jason Smith

Jason Smith

Auctioneer, Land Broker, Founder

Jason is an Auctioneer and Land Broker in Iowa and the surrounding states.  The DreamDirt team of auctioneers, land brokers, and realtors specialize in farmland sales primarily serving the heirs to family farms all across Iowa and some surrounding states.  Today's report details Iowa's current land market for land sold at auctions.

Email: | Phone: (515) 537-6633

Selling Land In This Political Environment

It is day 32 and the government is still shutdown and still affecting the lives of many across the country. We discuss how land prices are holding up in this political climate, what considerations should be taken when selling land right now, and what the market may look like in the coming months.


Land Prices During The Longest Government Shutdown Ever

So far, in terms of land value and prices, we are not seeing any harm from the longest government shutdown in history. Prices are still coming in strong and solid. The most noticeable change in the farmland market is the low volume of sales. Empty auction calendars across the Midwest make it evident that people are nervous to sell in this political climate.

What are they nervous about? I’ll repeat myself – prices are still coming in strong and solid. I don’t think sellers need to hold back. The market is still strong, and selling into a predictable market like this is the best way to have a good sense of what your property will bring.


What To Consider When Selling Land During A Government Shutdown

Farmers and producers interact with the government in many ways. Even those selling land are experiencing issues that would not normally arise. However, the USDA released a bit of good news today – all Farm Service Agency offices are reopening on Thursday to provide services for farmers and ranchers during the shutdown. While this won’t solve all of the problems for farmers and producers, it will help bring a few important services back online.

Right now, sellers in this market should account for the shutdown in the terms and conditions of their auction. Many unforeseen problems can result from the current lack of government support and programs. What if you get to closing day and the government shutdown impedes with you closing with the buyer? Your terms and conditions should include protections for your transaction should the shutdown affect it. While the shutdown is not making buyers spend less, preparation for issues such as this can help ensure a smoother selling process.  A professional auctioneer or broker can anticipate these things and help you prepare.

Looking Into The Future Of Land Sales

The outcome of January is dependent on both the trade war and the end of this government shutdown. The vast majority of farmers and producers believe President Trump is in their corner. While the political issues may be messy now, many foresee the outcome for the agriculture industry being better than before. Because of that, we aren’t seeing any pull-back on spending by this market. The demand is there and keeping the prices strong.

Like I talked about earlier, we’ve got sellers nervous to put their property on the market. However, the buyers are out there keeping the prices robust! We don’t have a crystal ball to see what this now-strong market has in store for us three to five months down the road. If a person wants to sell a farm, now is the most predictable time to be able to do that and have a good sense of the outcome.

Request a Free Valuation for Your Farm or Land Property

Whether you’re ready to start the selling process, or even remotely curious, we will gladly provide you with a FREE Market Analysis! If you are in a position to sell land in the Midwest, we want to help you achieve the top of the market on your sale.

Iowa Land Prices September 17th – 23rd, 2022

Iowa Land Prices September 17th – 23rd, 2022

Iowa Farmland Prices September 17th - 23rd, 2022 There was a total of 29 tillable farmland auctions that happened this week in Iowa. A total of 4,135.82 acres were sold. The average price per acre for the 29 auctions is $14,031/acre and $176.64/CSR2 point. Learn more...

read more
Iowa Land Prices Auction Results September 3rd – 9th, 2022

Iowa Land Prices Auction Results September 3rd – 9th, 2022

Iowa Farmland Prices September 3rd - 9th, 2022 There was a total of 18 tillable farmland auctions that happened this week in Iowa. A total of 2,511.96 acres were sold. The average price per acre for the 18 auctions is $11,831/acre and $155.19/CSR2 point. Top Selling...

read more