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

Welcome back to the Iowa Farmland Prices Report!  Its been a beautiful week in Iowa! Harvest is moving along very nicely this year with a few short rain stops but for the most part, it’s been a text book harvest across the state.  My cover photo this week is of my two sons watching the combine move through our field at our home.  They love to just sit on the edge of the field and watch the back and forth progress or even hop in the combine and take a few rounds.

This Week Iowa Farmland Average breaks $12,000 per acre

Back in August of 2021, the NASS report saw Iowa farmland value increase, but not to the extend we are witnessing a few months later now. They indicated a value for Iowa cropland at the time – near $7,810 per acre.  In this weeks report, we see farmland sales averaging over $12,000 per acre in a sample of sales over 3,500 acres.  I’ll have more below!

Land value chart Iowa

WASDE Report Pressures Corn and Soybeans

A big report this week sent soybean prices significantly lower which had been their trend.  The WASDE report put pressure on both corn and soybean prices which have recovered slightly since the initial report came out.  Like every Fall, we see this back and forth movement in the market based on USDA reports that can impact farmland prices and buyer sentiment.  It has always amazed me how closely moods track along with these reports.  Some with significant lasting effects and others just a week.  I doubt this has much impact (at least short term) for farmland prices and the rebound signals that.

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

Look at the spreads this week on farmland prices in Iowa. This week we see a much more pronounced spread with a low of $87.82 per CSR2 point in Monona County and a high of $200.55 in Mahaska County.  I think that may be the biggest one week spread in lowest to highest farmland prices I have witnessed.  Still, the core of our farmland prices this week remains between $130 and $160 per point.  The average of all farmland sales this week was down slightly but landed at a very hefty $154.24 per CSR2 point and that was a solid test on 3,592 acres sold.  The most impressive aspect of this weeks sales, an average farmland price in Iowa of $12,366.07 per acre!  That is incredible when you consider that the last Iowa State University report in December 2020 came in at $7,551 and the NASS report back in August 2021 indicated an average price of land of $7,740.  This shows the recent explosion in farmland prices across the state of Iowa fueled by higher commodity prices, low interest rates and a long period of low sales volume.  While many of those positive factors were set up and in place for this to happen, the market reaction will always be to drive prices down by introducing factors to the market that counter those pre-existing elements.  The added element of investors in the market is almost like a tornado inside of a tornado.

Many investors have had a good run in the stock market lately but many of them are growing more fearful and while the situation continues to materialize what we are seeing in Iowa’s farmland market is a fair amount of profit taking from land holdings where investors are selling off farmland they have held to take advantage of the high prices but seeming to find the only option they have with the proceeds is to go back to land so you have investors in the market as both buyers and sellers right now.  Again, very similar to what we experienced in 2011-2013.

Week after week, I have said eventually the supply will meet the demand.  We are on that path now.  I spent a few hours this week taking inventory and could find over 307 high quality farms that are available or will be sold before the end of the year.  Every day since I have either signed up new sellers for auctions or saw others hitting the market.  That will pressure the top prices we are seeing, to what extent – we won’t know for a few months. I suspect we’ll see it slow over our weekly reporting.

 

County Acres $/acre CSR2 $/CSR2
Grundy 138 14,300 92.2 155.10
Grundy 80 15,500 92.1 168.30
Plymouth 73 13,900 82.3 168.89
Plymouth 80 13,900 80.6 172.46
Pottawattamie 136.21 10,300 75.4 136.6
Harrison 212.79 7,000 60.7 115.32
Monona 140 9,300 84.2 110.45
Monona 106.5 8,050 81.8 98.41
Monona 144 6,200 70.6 87.82
Worth 72 11,200 74 151.35
Floyd 457.88 13,800 86 160.47
Floyd 60 11,800 80.5 146.58
Sioux 120 17,100 90 190
Hardin 157 14,700 94.4 155.72
Mahaska 181 8,100 60.5 133.88
Mahaska 173 10,000 69.1 144.72
Mahaska 73 14,700 73.3 200.55
Kossuth 80 16,500 86.8 190.10
Kossuth 160 15,600 88 177.27
Linn 75 15,100 85 177.65
Linn 80 12,900 72.6 177.69
Linn 73 11,400 62.3 182.99

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

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