Iowa Farmland Prices

April 28, 2021

Do you own land in Iowa but not sure how much it’s worth?

Are you interested in selling farmland in Iowa, but would like to know what land in your county typically brings?

Are you wondering if land prices are increasing or decreasing Iowa?

Check out the results from the 2020 Iowa Farmland Value Survey for Iowa State University!

In conclusion, this survey shows the 2020 state average for land in Iowa is estimated at $7,559/acre as of November 1, 2020. Professionals in the land real estate industry who submitted responses to the survey commented that low interest rates, high commodity prices, limited land supply and high demand to buy were all driving forces of the 1.7% increase in farmland prices from November 1, 2019 to November 1, 2020. This results in a $127 per acre increase as well.

Who is selling land in Iowa?

The majority of farmland I help sell comes from estate sellers which follows the results from the survey. 51% of farmland sales came from estate sales. Followed by 23% sold by retired farmers, 16% sold from active farmers and investors accounted for 9%.

Who is buying land in Iowa?

The majority of farmland buyers I see are existing farmers which follows the survey results too. This survey shows 72% of farmland sales were to existing farmers. Investors bought 22% of land sales in Iowa with new farmers representing 4% of farmland sales. The remanding 2% sold to other purchasers.

What county in Iowa has the highest farmland value?

According to the survey, Scott County, IA takes the lead for having the highest estimated farmland value of $10,659/acre. Followed by O’Brien County, IA at $10,656/acre and third, Sioux County, IA at $10,549/acre.

Are Iowa Farmland Prices Increasing in 2021?

Currently, we are 4 months in to 2021. While I cannot predict the future, from what we have seen in the real estate industry so far, I expect when this survey comes out in November this year it will show an increase in prices again.

If interest rates continue to stay low and commodity prices remain high, more farmers will be interested in purchasing farmland. If you’ve inherited land or looking to retire, now is a great time to sell farmland in Iowa! Click here to get started!

Therefore, don’t wait till harvest is over! You can still sell land with crop in the ground. Reach out for a free market analysis consultation today!

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Farmland Update: Week of April 19th – 25th, 2021

April 21, 2021

RECENT FARMLAND MARKET NEWS

In Iowa, there are currently 754 active farmland listings with and average listing price of farmland is $7,546/acre. This week there are two farmland auctions both in Southeast, Iowa. Here are the results from the auctions:

Wednesday April 21st, 2021: 194 acres in Van Buren County, Iowa

  • City: Birmingham, IA
  • Live and Online Public Auction Held at American Legion in Stockport, IA
  • Tract 1 – 102 acres of Farmland
    • Sold for $12,600/acre
    • 98.3% tillable
    • 81.2 CSR2
    • $155.17/CSR2
  • Tract 2 – 92 acres Mixed Used Land
    • Sold for $5,600/acre
    • 60.6% tillable
    • 63.3 CSR2
    • $88.47/CSR2

Wednesday April 21st, 2021: 59.88 acres in Wapello County, Iowa

  • City: Ottumwa, IA
  • On-site Auction
  • Sold for $8,950/acre
  • 91.9% tillable
  • 73.3 CSR2
  • $91.39/CSR2

Farmland Market Survey

The Realtors Land Institute and National Association of REALTORS Research Group released results of their Land Market Survey recently. The survey is done by land realtors from 2020 showing price and sales changes in land.

Results from the survey showed strongest sales and price increases in residential and recreational land:

  • Residential land sales price rose average of 6.8%
  • Recreational land sales price rose average of 3.6%
  • Ranch land sales price rose average of 3.1%

Overall, 3% increase in land sales and land prices rose an average of 2%.

Read more of their article here

Thoughts from Iowa Land Auctioneer, Rachel

With planting season upon us in Iowa, farmers are staying busy in the fields. Good quality farmland is still in high demand and prices are holding strong. Typically, there are fewer auctions as summer months approach and crop is in the ground, but I’m curious what Summer of 2021 will show for the land market.

Can I sell my farmland during the crop season?

Yes, you can still sell farmland during the crop season. I can help you set terms and conditions for your land auction to accommodate selling during the crop season especially if you have a tenant on the farm. I’m already noticing a few land auctions pop up for June and July and we are adding some at DreamDirt! Now is a great time to sell if you’ve inherited land or have thought about selling for the last few years! Get a free quote on what your farm is worth by filling out my form and I will get back to you!

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Farmland Auction That Was So Quiet You Could Hear Crickets!

April 9, 2021

Awkward Silence During Auction

Have you ever heard an auctioneer chant before? My guess is you have and think it’s amazing to listen too! If you haven’t here’s a video of one of my favorite auctioneers – Iowa native auctioneer, Emily Wears Kroul. Have you ever been to an auction where it was so quiet you could hear crickets though? Probably not, but I have and I was the auctioneer conducting it!

This story gets even better though! One of the sellers of the farm was playing the cricket noises from his phone – talk about awkward silence!

Online Auctioneer

On April 7th, we gathered at the community shelter house in Kiron, IA to sell 115.60 acres of farmland in Crawford County, IA. This wasn’t your typical land auction you might be picturing though. It was an online only auction, but we offered a bidding location to help bidders register to bid on their phone or device. Unlike a live more traditional auction where you would expect a big crowd and auctioneers chanting, the room stayed silent and the bidders watched the auction on their phone and hit the bid button on their own.

Kiron, IA Farmland Auction Results – Rachel Hoy Iowa Land Auctioneer

In a previous blog, I wrote about how I’m an auctioneer but I don’t know how to chant. During the auction, I called out each time a bid was placed and announced the current bid, asking bid price, bidding increment, and the $/CSR2 amount without actually chanting. As the time ticked down, I announced the amount of time left to place one more bid. Our timed online auctions are set to close at 2pm. and are open for about 30 days. Bids could be placed anytime up till April 7th at 2pm.

The seller’s confirmed the sale of the auction and lifted the reserve around 1pm that day. This encouraged bidders to bid even more since they know knew the farm would absolutely sell to the highest bidder. Even though it was set to close at 2pm, extended bidding happened till 2:06pm. This is because when someone bids in the last 2 minutes it extends out for another 2 additional minutes. Giving everyone a fair chance to bid until no more bids have been placed.

Social Pressure During Live Auction

Little did we know, the winning bidder was in the room with us. If it was a live auction, we all would have known the whole time who was bidding and winning. If you put yourself in the shoes of a bidder though, imagine the stress and social pressures you would feel bidding in front of your peers, the seller, banker, etc. This is why our online only auctions work so incredibly well. It takes all the social pressures away allowing the bidder to bid to his/her maximum potential without feeling judged. Their name stays anonymous online and that is why we didn’t know the winning bidder was in the room!

Our team of auction professionals call each person who registers and bids on our land auctions. They all have to accept the terms and conditions that the seller sets in order to participate in the auction. Even though it was surprising the winning bidder was in the room, we had talked to him earlier in the week to make sure he was set-up to bid online. Each bidder had their own account and participated from their own device.

We simply had a bidding location set-up to ensure extra help in-case someone struggled with using the internet. It may surprise you, but we only get a few people that call and ask if they can bid over the phone. Now a days, farmers use technology every day and we have been selling land online for the past 10 years! Online only auctions are the most powerful way to sell your land now and the most cost-efficient!

farmland in Crawford County, IA auction results

Online Only Land Auction Boone County, Iowa

We sold a farm the next day, April 8th in Boone County, IA without having a bidding location or live auction. It was completely online only! The sellers of the 75.99-acre farm near Boxholm, IA also confirmed the sale of the auction prior to 2pm. The auction extended all the way till 2:57pm!

Sold farmland in Boone county, Iowa price

Auctions Create Competition!

Auctions create competition! You can definitely see it when two bidders go back and forth bidding against each other for almost and hour! The seller’s confirmed the farm would sell and trade hands prior to the auction closing. This encouraged the bidders to keep bidding knowing they had a chance of owning the farm.

Are you curious how our online auctions work and what they look like? View the recording of this past auction here.

Free Auction Consultation

If you are thinking about selling land in Iowa, now is a good time! I offer free consultations! Let me help you get started on the right path to selling your most valuable asset. Contact me at 515-954-8063 or email Rachel@DreamDirt.com to request your free consultation.  

Auctioneer Rachel contact at 515-954-8063
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