Week 14 Iowa Farmland Auction Results | What’s Your Farm Worth?

Apr 8, 2018 | Farmland Prices

Jason Smith

Jason Smith

Auctioneer, Land Broker

Jason is an Auctioneer and Land Broker and founder of DreamDirt, He is a lead farm real estate professional in the Midwest and has pioneered many modern methods of selling farmland. His experience in helping lead families to successful farmland transactions spans 2 decades and a myriad of advanced marketing skills and designations has helped propel him to be one of the most successful farmland auctioneers. The company he founded, DreamDirt, continues to be a leader in the farm sales and auction space and prides itself in offering extensive land seller and buyer information as well as outcomes that exceed expectations.

Email: jason@dreamdirt.com | Phone: (515) 537-6633

Iowa Farmland Sales Summary

Iowa farmland prices week 14, thank you for joining us here on the DreamDirt blog.  This report measures the prices achieved at auction for farms that are at least 80% tillable.

Our charts this week show the prices achieved at Iowa farmland auctions for the 14th week of 2018 and the market has not changed much.  We are still seeing the low volume of farmland sales.  Auction companies across Iowa have very little on their schedules in the next 30 days.  We continue to see the trend line for price per CSR2 point increasing and the trend line for price per acre increasing.  It is interesting to look at the volume charts and note that the volume of acres sold at auction is decreasing (supply) and the volume sold in dollars in increasing ($price/demand)  This is due to increasing farmland values across Iowa.  You have heard the saying “As supply decreases, demand increases” and those two charts show exactly that for 2018 farmland prices in Iowa.

 

Average Price Of Farmland In Iowa

The averages price of an acre of farmland in Iowa this week was $8679.17 which was up from the previous week of $7821.59 per acre.  The trend line for this category continues to point upward indicating a rise in farmland values from Jan 1, 2018, til now.  Low volume continues to contribute to this upward motion in farmland prices and really is the driving factor.  Many comments on the fact that commodity prices are low right now and farmland should be too.  In theory, the value of an asset is directly correlated to its ability to create income but that theory is too short-sighted for farmland values as farmland in most cases tends to be a long-term investment.  I wrote an article on this a few months ago that might interest you Why Farmland Values Won’t Come Down.

Farmland Sales Volume In Iowa

No surprises here this week.  Farmland sales volume was on the low end of the chart this week in terms of acres and dollars sold coming in 5th from the bottom out of 14 weeks this year.  $7,876,186.50 in total transactions this week on 932.82 total acres of which 877.32 were tillable (94% tillable)

Volume over the next few months is likely to drop which is evidenced by a lower number of farmland auctions on calendars over the next 40 days and planting season is upon us.  Many auction companies typically try to avoid auctions during the 45 day planting season from April 15 to May 30.  Farms will sell fine during that time but if it’s not necessary to sell during that time period it makes sense to hold off a little and ensure you have everybody’s full attention.

Want helping learning what your farm is worth?  Get a FREE Market Analysis for your farm from DreamDirt and increase your chances of getting the right price for your farm when you sell!

Highlights From Week 14 Farmland Sales In Iowa

We saw the highest per acre price this week in Sioux County where 65 acres sold for $13,300 per acre and we saw the highest per CSR2 price in the same auction.  That farm was 88.6 CSR2 and sold at $150.11 per point.  The lowest this weke showed up in Woodbury County on a small tract of 10.8 acres that sold for $3,800 per acre which was $84.44 per CSR2 point.  The average price per CSR2 point this week was $111.24 with all but 3 sales breaking the $100 a point mark.

 

Iowa Farmland Auctions Report For April 1-7, 2018

County

Total Acres

Tillable Acres

Price Per Tillable Acre

CSR2

$ per Tillable CSR2

Price

% Tillable

Plymouth County

74.5

64.26

$5,600.00

57.3

$97.73

$359,856.00

86.26

Sioux County

65

63.06

$13,300.00

88.6

$150.11

$838,698.00

97.02

Warren County

88.12

85.15

$10,000.00

81.2

$123.15

$851,500.00

96.63

Warren County

148

130.86

$9,100.00

75.1

$121.17

$1,190,826.00

88.42

Woodbury County

10.8

9.39

$3,800.00

45

$84.44

$35,682.00

86.94

Wright County

151

147.01

$9,450.00

82.9

$113.99

$1,389,244.50

97.36

Winnebago County

40

36.66

$9,300.00

83.8

$110.98

$340,938.00

91.65

Clay County

73

73.7

$6,100.00

55.8

$109.32

$449,570.00

100.96

Marion County

104

100.54

$7,100.00

75.1

$94.54

$713,834.00

96.67

Cherokee County

72.4

69.89

$11,100.00

96.8

$114.67

$775,779.00

96.53

Cherokee County

69

61.27

$9,500.00

92.3

$102.93

$582,065.00

88.80

Cherokee County

37

35.53

$9,800.00

87.6

$111.87

$348,194.00

96.03

STATEWIDE TOTALS

932.82

877.32

$8,679.17

76.79

$111.24

$7,876,186.50

94.05

Featured Iowa Farmland Auction

Next week we will be selling this 46.6 acres of farmland at Osceola, Iowa.  This property is a prime development location surrounded by new development and a casino just south of Des Moines, Iowa.  If you are looking for development property with a return and well above average upside look at this farm and evaluate it for your investment needs.  We think you will like it.  View the listing at 46.6 Acres Clark County Iowa

This auction will be online only bidding so sign up for an online bidding account with DreamDirt or go to your app store and download our APP “DreamDirt Auctions”  Signing up is the same as registering for an auction.  A very easy process.  Call us if you have questions at 855-376-3478

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.

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