What is CSR2 Soil Productivity Rating?

May 19, 2022

Corn Suitability Rating (CSR) Explained

In 1971, Thomas Fenton a professor at Iowa State University developed the Corn Suitability Rating (CSR). It is used to measure the quality of the soils of a piece of farmland. The CSR2 formula includes six components and is calculated on a map unit basis using data and maps from the Iowa Cooperative Soil Survey. Read more here about what’s included in each component of the equation. In 2013, CSR was re-vamped to CSR2 as a new and improved system to calculate the soil productivity rating. We use CSR2 in Iowa, but many surrounding states have a productivity index as well. Such as National Commodity Crop Productivity Index (NCCPI) and PI (Productivity Index).

Soil Productivity vs. Soil Fertility

CSR2 studies a soils productivity – not soil fertility. Soil fertility can change depending on the nutrients in the soil, crop grown, farming practices, etc. This is why you would perform a soil test to determine the soil’s fertility. Soil productivity however does not change! It measures a farms ability to be intensely farmed over a long period of time. It is a constant number between 0-100, 100 being the best.

Why is CSR2 Important

CSR2 is important when it comes to determining what a farm might be worth. It is used to determine how to tax farmland. Higher quality farms with a higher CSR2 value are taxed more than lower quality farms. Same applies to determining how much a farm is worth on the market. Typically, higher CSR2 farms are worth more and sell at a higher amount then lower CSR2 farms.

This doesn’t mean that a low CSR2 farm will always sell at a lower amount. Some lower CSR2 farms (such as pastureland, development land, hunting/recreational ground) can sell for more than tillable farms. There are other factors that determine a farms worth. Demand, commodity prices, inflation, interest rates, buyer pool, location, amount of acres, access, improvements, etc. can all affect a farms value as well.

CSR2 Formula

Calculating Farmland Value based on CSR2

Many of my clients ask, “What is your opinion on what my farm is worth?”. To answer their question, I typically first take a look at the CSR2 value of the farm especially if it is an all tillable farm. In this scenario, I use a database that calculates the CSR2 of the farm and it generates a soils map for me to study. I then look at the $/CSR2 from recent sales, surveys, and reports, for the average of the county of where the farm is located.

I take that average and multiple it by the CSR2 value of the farm. For example a farm is 92 CSR2 in a county with and average of $165/CSR would be be worth around $15,180/acre. This is just an estimate. I will sometimes adjust this number depending on the other factors I listed above that affect farmland values in my free market analysis that I provided to interested sellers.

Do Buyers Look at CSR2 Values of Farms?

Yes and no. Some buyers/bidders I talk to want to know the CSR2 value right away and some don’t factor it into their decision making of buying a farm. Often though, bidders on a farmland auction or buyers putting in an offer will use the $/CSR2 calculation on what they think the farm is worth. From my example above of $165/CSR, one buyer might think the farm is worth more than the average and bid $180/CSR2. Rr $16,560/acre and some might only be willing to bid up to $150/CSR or $13,800/acre. The $/CSR2 is simply a guideline a buyer might follow and tool to use in determining what the farm is worth. It is just one factor.

Iowa CSR2 Averages per County

Below you will see a map of Iowa with each counties average CSR2 value. Iowa’s state average CSR2 is 68.4. You will notice from the map that O’Brien has the highest CSR2 average of 91.4 in NW Iowa and Decatur has the lowest rating of 40.1 CSR2.

Iowa CSR2 Averages per County

Read More >>
How to sell the family farm

How To Sell the Family Farm

August 24, 2021

Deciding to sell the family farm is one of the most difficult decision to make. I grew up on our family farm in Iowa that my grandparents bought back in the 1940’s. I enjoyed following my grandparents around doing chores while I was young, riding in tractors, and playing in the dirt. Now that it is just my dad and I running the farm, I could never imagine selling it. I know the emotional connection you have with your family’s farm and how hard this decision can be. However, sometimes it’s the only choice and what’s best for you and your family.

Inheriting a Farm with Multiple Family Members

Being an auctioneer and realtor, I’ve heard time and time again, “our mom/dad just passed away recently and now my brother/sister(s) want to sell the land we inherited”. Most often, the sibling I talk to is the one in charge of the estate or the sibling that has been farming the land and doesn’t want to agree to selling. Not only do I understand what it’s like to grow up on a family farm but also the, “I’m the only sibling that has interest in farming or does all the work” feeling. I was definitely the “tom boy” growing up between my younger sister and I. Even though my sister enjoys hanging out on the farm on the weekends and checking cows, she just doesn’t have as much passion and interest in farming as I do. Which is okay.

How to Decide if You and Your Siblings Should Keep the Family Farm

I know we are not the only siblings this way. It can be frustrating when it comes to deciding wether to keep or sell the family farm you now inherited. Or if you are reading this and deciding whether or not to sell your land or pass it on to your family, here are some secrets and tips.

Having the Important Conversation Now

I wish more families would talk before the passing of a loved one. My grandma got sick fast and passed away quickly, leaving the farm to her only living son, my dad. We know that her and grandpa’s wishes are to keep the farm running. If we ever get into financial troubles then it’s okay to sell a certain part of the farm. My dad and I know keeping the farm is best for us right now and we enjoy having it.

What is your plan?

However, this isn’t always the scenario for other families. I’ve seen siblings fight over what to do with the family farm and tear their relationship apart. Most often because of greed and other conflicts. I know that this is not what their parents would want. This can easily be avoided and save relationships if settled before the land owner passes. No one is promised tomorrow. It’s critical to have the conversation of what will happen with the family farm and have a plan. So what are the options you have for transferring the farm to your kids or other family/friends?

Farmland Transition and Estate Planning

How’d the conversation go with your the rest of your family? Do you know who would continue the farm? Do you know if some of your children could use the money now instead of owning land? Are any of the kids interested in owning the family farm? Are medical bills pilling up? Would you like to enjoy your hard work of farming over the years and retire? Depending on how you answer these questions, more than likely I would suggest selling now or dividing the land to inheritors now.

But you’re only saying this because you’re an auctioneer!

No, I’m saying this because of the drama that comes once you have passed. When there is no clear plan of what happens once your family inherits your land, this causes frustration, anger, and confusion. I see it all the time being an auctioneer. When more than one person inherits the farm, there’s always tension between members and emotional stress. My best advice is to sell your land now or divide the land to have only one owner. Here’s why.

Benefits of Selling Farmland to Avoid Family Conflict

Let’s continue with the scenario of one sibling wanting to keep the farm and continue farming and the other sibling does not and would rather have the money. As the landowner/parent you are faced with the difficult decision of deciding to sell now or let the kids figure it out when they inherit it. To avoid family conflict, I recommend selling now. Money from selling the farm can easily be split up compared to splitting the farm between multiple family members. If you’re worried about your child that still would like to keep the farm, as auctioneers we can help sell land to family members. We can do this by giving family per bid discounts. This allows them to have a fair chance at purchasing the land at a discount.

Dividing Farmland

Or you could divide the land first. Then each sibling can better decide what they want to do with the part they inherit. You could even keep the part of the farm your child who farms currently and is interested in keeping for future years, and allow them to rent it from you. That way you have still have income during retirement years. Selling the farm now could also allow more flexibility of where each kid would like to farm.

The Family Farm is Not Everyone’s Dream

Have your children moved off the family farm and staring their own farmstead across the state? Would they like to re-invest the money into farmland closer to where they live now with a 1031 exchange? Are they trying to start their own business or need the money to cover expenses? Emotions play a great role when selling a family farm. Realistically, money can be split more evenly. Which won’t cause the family to tear each other apart compared to dividing the land. Everyone has their own passions and dreams. It could be very well that the family farm is not someones passion. As I mentioned above, I have the passion for continuing our family farm but my sister does not. However, I know she still deserves to enjoy the benefits to the family farm. She should earn income or money from it just as much as I do.

Continuing the Family Farm

Many of my clients who have inherited the family farm have said that they grew up on the farm in Iowa, but now live in a different state. It’s often difficult to let go of things that meant so much to you and your loved ones. If you don’t have interest in farming and nervous about the idea of selling and letting go, I encourage you to think of all the memories you have of running around on the farm as a young kid and write them down. This often helps my clients realize that memories will continue forever. Even if the farm doesn’t continue on in the family and share these memories down the road. You could also continue the family farm by renting out to someone interested in farming!

Farmland Buyers

As an auctioneer, we can set up an auction for rent instead of selling the farm. It may surprise some people that our most common farmland buyers are still farmers themselves and not investors. If you’re thinking about selling, you could give the chance to a farmer looking to expand his operation. Or help a beginner farmer start his/her dream! The possibilities are endless and I’m here to help you through the process. I will listen to your ideas and wishes.

Helpful Resources for Transferring and Selling Farmland

Fear of what will happen to the family farm doesn’t need to cause you stress. There are several free resources to help you through the process of transferring the family farm. Iowa State University Extension and Outreach has several great resources to learn from for transition and estate planning. Resources can be found here. As someone who also understands grief and farming, I’m always here to answer your call or message. Don’t know where to start? I can make the process easy and comfortable for you. Let me handle all the details and answer your questions. I might be an auctioneer, but more importantly I will be your listening ear through everything. Whether you would like to vent or share memories, you can call me any day!

Rachel Hoy 515-954-8063

Read More >>

Iowa Farmland Market Results

June 28, 2021

Tillable Land Sold During June 21st – 27th

From $7,500/acre to $17,500/acre….Check out these recent farmland sale results!!! Farmland market is as hot as it is outside here in Iowa! Farmland auctions in June have really turned up the heat! Get started selling farmland today by filling out my questionnaire!

LINN COUNTY, IOWA LAND AUCTION

  • 90.69 acres
  • Online Virtual Auction
  • Located near Walker, IA
  • Sold for $9,800/acre
  • 97.8% tillable
  • 59.2 CSR2
  • $165.5/CSR2

HUMBOLDT COUNTY, IOWA Land Auction

  • 61.38 acres
  • Online Virtual Auction
  • Located near Dakota City, IA
  • Sold for $12,400/acre
  • 92% tillable
  • 81.4 CSR2
  • $152.33/CSR2

GREENE COUNTY, IOWA Auction Results

  • 388.86 acres sold in 3 parcels
  • Virtual Live Auction
  • Located near Bagley, IA
  • Tract 1
    • 160 acres
    • Sold for $13,300/acre
    • 96% tillable
    • 86.8 CSR2
    • $153.23/CSR2
  • Tract 2
    • 148.86 acres
    • Sold for $13,000/acre
    • 96.5% tillable
    • 83.10 CSR2
    • $156.4/CSR2
  • Tract 3
    • 80 acres
    • Sold for $13,000/acre
    • 98% tillable
    • 79.5 CSR2
    • $163.5/CSR2

BUENA VISTA COUNTY, IA Farmland Market Results

  • 159.05 acres sold in 2 parcels
  • Live and Online Auction held at Marathon Community Center in Marathon, Iowa
  • Located near Alber City, IA
  • Tract 1
    • 153.28 acres
    • Sold for $10,050/acre
    • 95% tillable
    • 82 CSR2
    • $122.56/CSR2
  • Tract 2
    • 5.77 acreage
    • Sold for $139,000/acre
    • 2,032 sq. ft. ranch home, 3 BD, 1 Bath
    • 26′ x 32′ steel utility building, 68′ x 40′ steel utility building, 40′ x 80′ Quonset building
    • 8,000 bushels of grain storage

POLK COUNTY, IOWA Farmland Auction

  • 75 acres
  • Live auction with online bidding held at the American Legion in Bondurant, IA
  • Located near Dakota City, IA
  • Sold for $9,000/acre
  • 95% tillable
  • 62 CSR2
  • $145.16/CSR2

MITCHELL AND FLOYD COUNTY, IOWA Farmland Market Results

  • 240 acres sold in 3 parcels
  • Live auction held at CRC Events Center at the Mitchell County, IA Fairgrounds
  • Located near Osage, IA
  • Tract 1
    • 79.55 acres
    • Sold for $12,275/acre
    • 98.5% tillable
    • 94.4 CSR2
    • $130/CSR2
  • Tract 2
    • 79.51 acres
    • Sold for $12,275/acre
    • 96.4% tillable
    • 90.6 CSR2
    • $135.5/CSR2
  • Tract 3
    • 80 acres
    • Sold for $7,500/acre
    • 90% tillable
    • 58.3 CSR2
    • $128.65/CSR2

SAC COUNTY, IOWA Farmland Auction

BUENA VISTA COUNTY, IOWA Land Auction

  • 80 acres
  • Live auction held at the Vaudt Distributing in Rembrandt, IA
  • Located near Rembrandt, IA
  • Sold for $12,000/acre
  • 96.8% tillable
  • 87.7 CSR2
  • $136.8/CSR2

HARDIN COUNTY, IOWA Farmland Auction

  • 80 acres
  • Live auction with online bidding held at the Radcliffe American Legion
  • Located near Radcliffe, IA
  • Sold for $14,300/acre
  • 98% tillable
  • 85.4 CSR2
  • $167.4/CSR2

LINN COUNTY, IOWA Farmland Market Results

  • 160 acres sold in 2 parcels
  • Live auction with online bidding held at Columbus Club in Cedar Rapids, IA
  • Located near Marion, IA
  • Tract 1
    • 80 acres
    • Sold for $17,250/acre
    • 93.4% tillable
    • 92.5 CSR2
    • $186/CSR2
  • Tract 2
    • 80 acres
    • Sold for $17,500/acre
    • 99% tillable
    • 91.9 CSR2
    • $190.42/CSR2
Read More >>

5 Ways to Save Money When Selling Farmland

June 18, 2021

Farmland owners! Are you thinking of selling some farmland real estate and concerned about how much it will cost to sell? You can certainly try to do for sale by owner. I’m not stopping you from trying but there are some dangers that come with FSBO. Instead, try these 5 cost saving tips when choosing to sell by auction or listing! Save your money!

Want to save over half of commission costs? Hire an auctioneer instead of realtor!

I come from an auctioneer and realtor background. I’ll be the first to tell you that hiring auctioneers will save you thousands! Typically, realtors will charge you twice as much in commission costs compared to auctioneers! Realtors will often split commission with a buyers agent so you are paying 2 agents instead of 1.  You are paying for your agent and also the buyers realtor! To compensate for the cost of the additional brokerage coming from the buyer’s side, a listing realtor will typically charge more than double! In-case they need to split the commission 50/50 with buyer’s side. This is why hiring an auctioneer can save you over half of commission!

At DreamDirt Farm and Ranch Real Estate where I work, we don’t offer cooperative brokerage for auctions in most cases. It’s not necessary and does not serve our client well. We are dedicated to finding buyers for your property. Since your auction is open to the public, and with our exceptional marketing and advertising, buyers are able to find your land auction and are welcome to bid! Realtors often ask us to share commissions on our auctions hoping to bring the buyer. However, we’ve found that with our advertising on Zillow and many other aggregation websites the buyers are already exposed to the listing. Buyers agents never serve to improve the outcome of your auction . This helps you save money on commission costs since you are only paying us and not the buyer’s agent. Our commission is typically 1-5% for land auctions, which is considerably low compared to 5-10% realtors charge. 

Choosing an Auction over a Listing for Sale can save you money and time!

If the first money saving cost tip didn’t convince you to market your property by auction, here’s another reason! 

Our auctions typically take 60 days to complete. This includes 30 days of having your auction open for bidding. Followed by 30 days following for closing process with new buyer. We have found 60 days to be extremely effective! The 30 days gives us time to get marketing and advertising out the door. This gives bidders plenty of time to arrange financing. When compared to a listing, auctions create a sense of speed and urgency to get bids in on the property.

Listings don’t have a date attached. This gives buyers more time to dwell on the idea if they want to put an offer in or not. Some buyers like to wait the seller out and wear them down.  Some of our past sellers have even mentioned they have tried selling their land to neighbors. The neighbors said they had interest, but the sellers never got a clear answer or offer right away. Once they hired us to do the auction, then the neighbors saw the sellers were serious about selling! Bids were placed before time ran out for opportunity to purchase neighboring land.

The 60 day time frame is also a huge plus when it comes to costs and saving money!

When selling property, you need to keep in mind that you continue paying taxes, insurance, and maintenance in the time period of selling. With a 60 day auction process, you can save thousands when compared to if your listing took longer than 60 days. Imagine if it took an extra 6-12 months to receive an offer. You’d be done paying on taxes, insurance, and extra costs months ago if you did an auction!  Not only do you save that money, you put it to use earlier on something which contributes to more saving.

One last tip for choosing the auction method, is to have an online only timed auction! Live auctions where bidders come to hear an auctioneer chant are typically more expensive to the seller. This is because you’re incurring more costs for more peoples time, costs of the venue, travel, refreshments for the crowd, printed items, insurance, and set-up fees. Hint: Ask to have an online only auction to save more in commission and fees. 

Choose the right marketing package! Do you need the whole works or just want a little advertising?

This is where you can save some GREEN! Advertising cost add up fast! At DreamDirt we charge no marketing and advertising fees for properties valued over $250,000. If you’re curious of how much your property is worth contact me today! Other companies may charge you for newspaper ads, flyers, drone video, postcards, digital ads, etc.! If a company you are interested in charges for marketing, make sure you understand where exactly your money is being spent. Some of our past sellers who didn’t meet our free advertising offer have decided to have us use photos instead of a video, and digital ad instead of print advertising.

When deciding how much advertising you want done for your farm, also take into consideration the quality of the marketing. Does the company produce appealing flyers and videos? Do they make it all in house or hire a third party? DreamDirt’s advertising is done all in house which makes it more affordable for our sellers!  

Commission costs still too high for you as a seller? 

Have you heard of Buyer’s Premium? It’s a way you can save on commission cost by charging the buyer a percentage on top of his final bid. This helps pay for costs of the auction. The auction serves the buyer and seller both.  With a 4% commission for example, you could pay for 2% and charge the buyer the other 2%. It’s completely up to you as a seller how you offer the property. 

With an auction you set the rules and the buyers bid accordingly. The buyer’s premium may reflect in the amount bidders are willing to bid. Bidders know they’ll owe and additional percentage on top of their bid and some it may not. We see it some in Iowa but other states and areas it’s more common. We just finished this auction with a 2% BP in Buena Vista County, IA and have also sold land in Kansas with Buyers Fee of 5%.

Compare several companies and don’t be afraid to negotiate costs and fees!

Most landowners only get one shot at selling land in their lifetime. My biggest piece of advice is to become educated on the process! Also interview companies you are interested in hiring to sell your most valuable asset! If you’re nervous about paying commission don’t be afraid to negotiate! It may surprise you what we can come up with. I’ve had sellers choose less commission percent but pay for marketing up front. The have set up a commission scale depending on what the farm sells for. Most choose the no risk option of only paying commission once the land is sold. At the end of the day, I want you to be comfortable with hiring me as your auctioneer at a price we can both agree too. I offer a free consultation and proposal for interested sellers to get started with the land selling journey. Start here today!

Read More >>

Iowa Farmland Auction Prices

June 13, 2021

Here are the auction results from June 7th – 13th in Iowa. Farmland is selling incredibly well for landowners and we are seeing some record high prices! Appears to be many more land auctions coming up the rest of this month. If you’re ready to get started selling your land by auction or listing fill out my questionnaire today!

Buena Vista County, Iowa Farmland Auction

  • Live and online auction held at Old Rembrandt Gym Rembrandt, IA
  • Tract 1
    • 109.94 acres
    • Sold for $11,400/acre
    • 82.1 CSR2
    • $138.86/CSR2
  • Tract 2
    • 112.64 acres
    • Sold for $9,250/acre
    • 79.4 CSR2
    • $116.50/CSR2

Kossuth County, Iowa Farmland Auction

  • Live and online bidding held at Main Street Pub in Bancroft, IA
  • 73.29 acres
  • 97.6% tillable
  • 84.70 CSR2
  • Sold for $15,500/acre
  • $183/CSR2

Shelby and Crawford County, Iowa

  • 619 Acres sold in 4 tracts
  • Live auction held at the Dunlap Livestock Auction in Dunlap, IA
  • Tract 1
    • Sold for $12,400/acre
    • 257.9 acres
    • 97.5% tillable
    • 70.4 CSR2
    • $176.14/CSR2
    • Includes grain binds and outbuildings
  • Tract 2
    • Sold for $12,400/acre
    • 146.96 acres
    • 98.5% tillable
    • 66.8 CSR2
    • $185.63/CSR2
  • Tract 3
    • Sold for $13,400/acre
    • 136.53 acres
    • 98.12% tillable
    • 66.9 CSR2
    • $200.3/CSR2
  • Tract 4
    • Sold for $10,000/acre
    • 77 acres
    • 88% tillable
    • 64.7 CSR2
    • $154.56/CSR2

Jones County, Iowa

  • Live auction held at Lawrence Community Center in Anamosa, IA
  • 55.87 acres
  • 86.9% tillable
  • 86.5 CSR2
  • Sold for $13,0000/acre
  • $150.3/CSR2

Osceola County, Iowa

  • Live auction held at Little Rock Town and Country Club in Little Rock, IA
  • 150.20 acres
  • 95% tillable
  • 95.5 CSR2
  • Sold for $15,0000/acre
  • $157.07/CSR2

Free Resources for Landowners!

I enjoy educating landowners with free resources and providing the materials you need to help answer questions about land values and how to sell. The Iowa State University Extension and Outreach provides valuable information as well! Check out their surveys and reports here! As always, please reach out with any questions you have! I’d be more than glad to answer your call and help you!

Read More >>

Farmland Acres Sold Market Update June 1st – 6th

June 7, 2021

Howdy! Looks like June is going to be a busy month selling farmland acres! Typically, farmland auctions start to slow down during the crop season months/summertime and farm equipment auctions pick up. However, with the prices we are seeing this year per acre – it wouldn’t surprise me if it’s a busy summer of selling land! Land prices have most likely increased since the last time you’ve had your land evaluated! If you are thinking of selling farmland this year, contact me for a free consultation and analysis!

Johnson County, Iowa

  • Sold for $14,650/acre
  • 156.81 acres
  • City: North Liberty, IA
  • Live and online auction held at Bella Sala Event Center in Tiffin, IA
  • 92.4% Tillable
  • 89 CSR2
  • $164.60/CSR2

Des Moines County, Iowa 34.11 Acres

  • Sold for $12,200/acre
  • City: Burlington, IA
  • Online only auction
  • 67.9% Tillable
  • 66.7 CSR2
  • $182.90/CSR2

Kossuth County, Iowa 159 Acres

  • Sold for $15,200/acre
  • City: Whittemore, IA
  • Live auction held at Whittemore Fire Station
  • 96% Tillable
  • 83 CSR2
  • $183.13/CSR2
  • Includes improved acreage

Jones County, Iowa

  • Sold for $8,300/acre
  • 153 acres
  • City: Center Junction, IA
  • Live auction held at Lawrence Community Center in Anamosa, IA
  • 85.6% Tillable
  • 47.4 CSR2
  • $175.10/CSR2

Many more land auctions to come this month! Are you ready to start the land seller’s journey? Start by filling out my questionnaire today and I will get back to you as soon as possible!

For most farmers, planting season has wrapped up and the majority or corn and soybeans are in the ground. It’ll be interesting to watch the crops growing during the summer as we pray for rain and not another Derecho. USDA RELEASES STRONG CORN GOOD/EXCELLENT RATING Read more here by Successful Farming.

Read More >>

Iowa Farmland Sales Update

May 31, 2021

May 27th – May 31st

Let’s wrap up May Iowa farmland sales! According to, the Land Talker Jim Rothermich, there were 2,418 acres auctioned in May 2021 in Iowa which is more than the last two years in May. More Iowa landowners are looking to sell since prices are strong and high! It’s looking like June will bring many land auctions. I’m guessing the next few months will bring record breaking prices for farmland sales. Check out these recently sold farmland auction prices!

Palo Alto County, IA 80.43 acres Farmland Auction

  • City: Ayshire, IA
  • Live and online auction at: Ayshire Community Center
  • 80.48 acres
  • 97.6% tillable
  • Sold for $11,800/acre
  • 79.1 CSR2
  • $149.18/CSR2

Dallas County, Iowa 149.01 Acres Farmland Auction

  • City: Woodward, IA
  • Online Only Auction
  • 149.01 Acres
  • 94% tillable
  • Sold for $12,500/acre
  • 86.60 CSR2
  • $144.34/CSR2

Cherokee County, Iowa 109.33 Acres Farmland Auction

  • City: Cherokee, IA
  • Live Public Auction held at Cherokee Community Center
  • 109.33 acres
  • 100% tillable
  • Sold for $14,300/acre
  • 95 CSR2
  • $150.53/CSR2

Crawford County, IA 515.42 acres Farmland Auction

  • City: Denison, IA
  • Live auction held at Denison Livestock Auction
  • Sold in 5 tracts
    • Tract 1 – 153.34 acres
      • Sold for $14,500/acre
      • 100% tillable
      • 84.7 CSR2
      • $171.19/CSR2
    • Tract 2 – 61.84 acres
      • Sold for $12,000/acre
      • 75% tillable
      • 73.3 CSR2
      • $163.71/CSR2
    • Tract 3A – 79.74 acres
      • Sold for $11,200/acre
      • 91% tillable
      • 67.2 CSR2
      • $166.67/CSR2
    • Tract 3B – 18.51 acres with CRP
      • Sold for $92,000
    • Tract 4 – 114.74 acres
      • Sold for $7,600/acre
      • 84% tillable
      • 70.4 CSR2
      • $107.95/CSR2
    • Tract 5 – 87.25 acres
      • Sold for $6,800/acre
      • 75% tillable
      • 59.7 CSR2
      • $113.90/CSR2

If you’re curious about selling land and want to learn more – fill out my questionnaire to get started today! Recently, I wrote a blog about 5 ways you can save money when selling farmland that you might be interested in reading too!

Read More >>

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!

Read More >>

Pros and Cons to 5 Different Ways to Sell Farmland

November 22, 2020

Are you feeling confused on how you should sell your farmland? Here’s a quick checklist of the pros and cons to common methods of selling land. Choose one which best fits you and your farm, or reach out today to have a free professional consultation!

Sell by Live Bidding Auction

This is where people show up to a common place and the auctioneer calls for bids in-person on a certain day. Sellers typically come to live auctions and talk with their auctioneer during a “break” in bidding to discuss the price of where bidding is at. With a reserve auction, which is most popular, you as a seller have the right to accept the highest bid, reject it, or confirm the sale at your reserve price and sell to the highest bidder.

Pros

  1. As a seller, you set your own terms and conditions bidders have to agree to.
  2. Live auctions are widely recognized as the traditional way of selling land. 
  3. In this method, an auctioneer will chant out-loud and take bids. Creating a unique atmosphere that the public enjoys listening to.
  4. Some live auctions also include online bidding depending on the auction company. 

Cons

  1. Venue expenses to hold the auction can be an extra cost.
  2. Bidders experience social pressures and often become nervous bidding against friends, the farm tenant, and the public. Resulting in lower prices when compared to online only auctions.
  3. Live auctions are often stressful to you as a seller because you have very little time typically during the 10-minute break between bidding to decide if the price is high enough for you to sell your land or not with your auctioneer.

Sell by Timed Online Auction

In this method, all bidding is online and timed. Bidding is typically open for 30-45 days and the auction has a set date and time where bidding will end. I recommend online land auctions to all of my clients as the preferred method of selling land because of the benefits they provide compared to live in-person auctions.

Pros

  1. Bidding online greatly reduces bidder friction by taking away social pressures that are experienced at a live auction. The bidders remain anonymous online and can sit in the comfort of their home and bid!
  2. Bid from anywhere! 
  3. Unlike a live auction, there are bids already placed before auction day!
  4. Setting a date for the auction to end creates momentum and competitions for people to bid. Unlike a listing which could take several months!

Cons

  1. In this case the auctioneer does not chant out loud, but the time ticks down and flashes when someone bids. Still creating an exhilarating experience for bidders to keep placing bids!
  2. Tip – research auction companies and choose one who owns their bidding software and has multiple sold results of online land auctions over several years!

Sell by Listing

The biggest difference between auctions and listings is a for sale price instead of an auction date. Your real estate agent helps you understand offers submitted by buyers and markets the property for you.

Pros

  1. You set the price as a seller.
  2. Buyers who are investors can calculate return rate since the price is established. 

Cons

  1. Buyer’s will present offers with contingencies and terms which you either have to accept, counter-offer, or decline.
  2. Typically, listings are a longer process than auctions since there is no set date.
  3. You can easily over-price your farm or acreage and have to work down on price instead of up.
  4. Listings require a higher commission fee to cover paying both seller and buyer brokerages when compared to auctions.
  5. If there are multiple owners, all sellers will have to agree on the terms presented by buyer which can be challenging to achieve.
  6. Multiple open houses dates which are time consuming!

Sell by For Sale by Owner

Have land to sell? You can try selling on your own!

Pros

  1. You could get the job accomplished yourself as a seller. 
  2. Since you are the primary contact you will deal directly with potential buyers and receive all inquiries!

Cons

  1. Marketing/Advertising is all on your and cost money!
  2. You have to be comfortable accepting offers with contingencies and having conversations with potential buyers. 
  3. There is no sense of urgency for buyers to present an offer when compared to timed online auctions which have a time frame laid out. 
  4. If selling land with a house, you will need to have multiple open house dates. Visits from potential buyers can be very inconvenient.
  5. You will be responsible for making sure the closing process is moving correctly and on time.
  6. Selling land is complex, and sometimes paying an attorney for legal advice is necessary!

Private Direct Offer

I offer this method to sellers looking to keep their name private and not listed on their land auction or listing. This method is only advertised to select list of buyers who are required to accept the terms and conditions and place an offer within a few days.

Pros

  1. Completely private – you don’t have to display your name or who owns the farm.
  2. You will set your terms and conditions similar to an auction.
  3. Your property will only be marketed to a select few individuals and investors to make offers. 
  4. Typically, a fast process and can be used for lease back options.

Cons

  1. Since it is not advertised to the public, this creates a smaller buyer pool and may not achieve as high of a price like an auction would.
  2. Not as common when compared to auctions and listings. 
  3. Only select auctioneers and land agents provide this method.

Most landowners only sell land once in their life, and only get one shot at it to make it right. My advice – reach out to a professional who has sold multiple properties and can offer advice on what method best fits your land. If you have any questions or would like a free consultation, fill out this form and I will reach out to you!  

Read More >>