Jason Smith

Jason Smith

Auctioneer, Land Broker, Appraiser

Jason is an Auctioneer and Land Broker in northwest Iowa at Storm Lake and Mason City.  Jason and his Iowa farmland team specialize in farmland sales primarily serving the heirs to family farms.  Today's report details the current land market in Iowa for land being sold at auctions.

Email: jason@dreamdirt.com | Phone: (712)213-6400

It seems that week after week the Iowa Farmland Market keeps outdoing itself and I keep saying the same thing, the Iowa farmland market is HOT!  While some weeks have shown some sporadic weakening like this week the averages of farmland sales are affected by the quality of farms offered in any given week.  It seems very much to be neighborhood related and while it is confusing in some places, volume has tamped down prices – and in others it hasn’t.  It has a lot to do with the wealth and structure of each farm neighborhood and even with that in mind, oftentimes where the strength of a neighborhood may be less than others, investors are backfilling the any weakening and we’re still coming out with a strong showing.

heat map of Iowa Farmland sales

Iowa Land Prices at A Glance

Our Iowa Farmland Price Heatmaps have been a huge help for people that want to visiuliaze and research farmland prices in Iowa.  Here you can research your farm’s proximity or the statewide market and see individual sale results, average prices per acre, average price per CSR2 point as well as volumes of sales and the number of acres sold.  Use this market price research tool right here at DreamDirt.  Click the Iowa map to get started.

Iowa Farmland Sales News This Week

A week of mix results in the Iowa Farmland Market but at a glance it is a bit deceiving.  For the first time in some time we are seeing a result below $100 per CSR2 point and multiple tracts in the $115 to $130 range.  This is due to the fact that during this week we saw some lesser quality farms going to the auction block.  Knowing that you can see those lower quality farms are now achieving what good quality tillable farmland was selling for a year ago! I have researched all of the farms in my report and see that any of the farms under $130 per CSR2 point had an detracting factor that resulted in a lower than average farmland market value.  Some of them were wet, had non income producing acres, timber areas, or were classified as pasture.  Some of the lower tracts including Clay County at $5,700 per acre would have little value beyond recreational value!  When I consider that against our own farmland auctions we’ve seen very aggressive bidding on recreational value farms.  We sold a farm this week for the Bergman Family heirs in Monona County that was largely a recreational farm.  It had 52 tillable acres out of 130.  Less than 50% tillable wasn’t well received by local farmers, but deer hunters from 6 different states bid on the farm.  At the end of the auction the farm sold for $6,010 per acre!  Only 9 months before I had sold a neighboring farm 1 mile away with similar make up, slightly less soil quality and that farm sold for $3,950 per acre.  Same neighborhod, similar makeup, similar quality, same local bidders but a result over $2,000 per acre higher only months later.  Thats a great picture of what we are seeing in the Iowa Farmland Market today, very strong aggressive bidding and significant price appreciation for farmland during 2021.

Any farms that will close in 2021 are likely now on the market and we are starting on 2022 business.  For those of you considering selling a farm in 2022 – now is your time to get into the market.  It makes sense at this point to get on board early in the year rather than later in the year.

Over the next 12 weeks I expect a higher volume of farmland to come on the market much like we have seen across much of Iowa during the latter portion of 2021.  As we progress through the season of selling farmland in Iowa this year, I think many sellers will be inclined to believe that the longer they wait the better it will get.  Unfortunately, thats not how a strong farmland market works and numbers are showing us we are likely at the peak of farmland prices now.  In fact, we are seeing more resistance to higher price and this weeks numbers while good are off from previous weeks!  Over the next few weeks, I will be helping a few buyers bidding on farmland auctions of other companies and representing them as their buyer agent and expect to get some insight into bidder activity through that.

This week the average price of farmland in Iowa per CSR2 point was $150.87 which is a significant reduction from previous weeks.  This week an average acre of farmland in Iowa sold for $11,866 per acre but again, compared to past weeks there were more lower quality farms offered this week which does affect the average we calculate.  Call me anytime if you have questions at 515-537-6633 or email me at Jason@dreamdirt.com

 

 

 
County Acres $/acre CSR2 $/CSR2
Woodbury County 120 $13,700 81.1 $168.93
Cerro Gordo County 78.43 $14,000 83.60 $167.46
Lyon County 80.6 $15,800 95.3 $165.79
Lyon County 80.69 $15,200 95.2 $159.66
Winneshiek County  112 $9,598 69.7 $137.70
Allamakee County  162.5 $8,615 66.1 $130.33
Muscatine County  51.785 $10,125 59.9 $169.03
Louisa County  55.504 $9,950 52.6 $189.16
Henry County  130 $6,050 51.5 $117.48
Shelby County  157.79 $17,600 91.1 $193.19
Shelby County  154.41 $17,600 94.2 $186.84
Buena Vista County  73.5 $15,000 93.2 $160.94
Cass County  77 $12,600 78.1 $161.33
Franklin County  74.91 $11,100 73.6 $150.82
Lee County  76.68 $13,000 68.3 $190.34
Hardin County  45 $10,200 78.4 $130.10
Osceola County  42.98 $12,300 90.4 $136.06
Osceola County  57.55 $6,500 75.3 $86.32
Clay County  84 $8,600 85.7 $100.35
Clay County  59 $5,700 66.5 $85.71
Jasper County  388.07 $13,850 86.12 $160.82
Jasper County  151.4 $9,100 67.12 $135.58
Mills County  157.15 $14,500 84.7 $171.19
Mills County  162.05 $14,100 85.1 $165.69

Rachel Tiffany is a licensed real estate agent and auctioneer at DreamDirt.  You can reach her at 515-954-8063 or email Rachel@dreamdirt.com 

Upcoming Farmland Auction Pottawattamie County Iowa

Next week we have an great offering in Pottawattamie County near Carson, Iowa of 198.9 acres that will be sold in 2 individual tracts.  This farm offers high 70’s to mid 80’s CSR2 ratings and very nice riverbottom soils.  These are high quality farms border the City of Carson.  The farm is offered by the family as an online auction, all bidding will happen on our website at Carson Iowa Farmalnd Auction.  If you are looking for a 1031 replacement farm this is a farm that can return a very nice rental payment and is very close to market.  Jason Smith and Tom Bradley are the auctioneers for this auction and can be reached at 515-537-6633 or 515-202-7687.

lewis jeneary farmland auction

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