Week 20 Iowa Farmland Auction Results

May 24, 2018 | Farmland Prices, Land Auctions

Jason Smith

Jason Smith

CAI Auctioneer, Land Broker

Founder, Auctioneer, Broker, and Agent at DreamDirt, Jason Smith is a lead farm real estate professional in the Midwest. He has achieved the pinnacle of auction education earning the CAI designation and is one of only 11 CAI auctioneers in Iowa. Jason graduated from the World Wide College of Auctioneering, and has achieved the PRI designation from the Professional Ringmen Institute. Jason and his wife founded DreamDirt in 2005, and the company continues to be a leader in the farm auction space and prides itself in offering extensive land seller and buyer information.

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

Iowa Farmland Sales Summary

Our trendlines have turned down in 2018 as we continue to track farmland price from the auction of 80% tillable farms.  Lower volume and a fair number of lower quality farms recently have affected the averages statewide.  A recent report on Iowa Farmland Rental Rates was recently released showing a gain in farmland rental rates over the past year.  This was the first gain in farmland leases in the past 5 years and it was small but it progressed forward which is good news for everybody and shows the agricultural industry has a little strength.  Combined with very few distressed farms hitting the market on the market despite expectations of them says that many have misjudged the strength in the countryside or some factor is at play that nobody understands yet.

This week we are reporting on just 4 auctions in all 99 Iowa Counties.  Those farms averaged $8270 per tillable acre while the average of the farms (not acres) was 77.05 CSR2.  This put the week at $103.81 average per CSR2 point which was down for our 2018 trend.

 

Farmland Sales Volume In Iowa

The volume of farmland sales is just about non-existent yet buying power is as strong as it has been in a long time.  The lack of supply is building and 1031 money is very plentiful right now.  With development strong across the state of Iowa and especially in metro areas, there is a lot of money waiting to be parked in farmland.  The value that 1031 flow adds to farms can be significant but is always temporary.  There are at times plentiful investment money from 1031 and at times its very short.  We happen to be in a period where its plentiful but farms available for sale are short.  This supply of money is probably most aimed at the Central to Eastern Iowa areas with a few opportunities west and more so in the Council Bluffs and Sioux City areas.  Because 1031 exchanges are time definite with an expiration date on them it pays to get yourself in the early part of that run up to those dollars versus the tail end.

The following are the farms sold in Iowa this week including farms in Clarke County, Lyon County, Franklin County and Mitchell County.      Prices ranged from $65.59 per CSR2 point to $153.40 and we see the state average right around $107 a point today for 2018.

 

Iowa Farmland Auctions Report For May 13-18, 2018

STATEWIDE TOTALS

470.97

424.01

$8,270.00

77.05

$103.81

$3,440,397.60

90.03

County Total Acres Tillable Acres Price Per Tillable Acre CSR2 $ per Tillable CSR2 Price % Tillable
Clarke

123.97

102.83

$4,080.00

62.2

$65.59

$505,797.60

82.95

Lyon

40

37

$13,300.00

86.7

$153.40

$532,000.00

92.50

Franklin

150

146.78

$8,900.00

84

$105.95

$1,335,000.00

97.85

Mitchell

157

137.4

$6,800.00

75.3

$90.31

$1,067,600.00

87.52

Featured Iowa Land Auction

Learn more about this unique land auction in Monroe County Iowa on DreamDirt.com.  This 142 acres of land for sale in Monroe County, Iowa is the home of the World Record non-typical whitetail and truly the best hunting land available in Iowa today.

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