Week of April 26th – May 2nd
Hi everyone! There were only two farmland auctions this week in Iowa. We are starting to see fewer auctions each week leading into the late spring/early summer crops now that everyone is getting crops in the ground. Here are the results from both farmland auctions:
Dallas County, IA 83 Acres Farmland Auction
- City: Adel, Iowa
- Live Auction Held at Redfield Legion Hall
- 83 acres near KAO Campground and I-80 interstate
- 72% tillable
- Sold for $10,800/acre
Muscatine County, IA 349.51 Acres Farmland Auction
- City: Nichols, Iowa
- Live Auction Held at Lone Tree Community School Wellness Center
- Sold in 5 Tracts
- Tract 1 – 70.87 acres
- Sold for $9,500/acre
- 92% tillable
- 74.1 CSR2
- $140/CSR2
- Tract 2 – 85 acres
- Sold for $10,000/acre
- 94% tillable
- 76.7 CSR2
- $139/CSR2
- Tract 3 – 86.6 acres
- Sold for $8,200/acre
- 92% tillable
- 68.9 CSR2
- $129/CSR2
- Tract 4 – 84.23 acres
- Sold for $6,700/acre
- Pasture
- 66.5 CSR2
- $100.75/CSR2
- Tract 5 – 22.81 acres
- Sold for $8,150/acre
- Development
- 54.9 CSR2
- $148.45/CSR2
- Tract 1 – 70.87 acres
April Total Farmland Acres Sold By Auction: 3,501 acres
Thoughts from Iowa Land Auctioneer, Rachel
Now that we are 4 months into 2021, we are starting to become more aware of how the rest of the year may fold out. Commodity prices were gradually increasing throughout March and April, and have really hit some high prices! We haven’t seen some of these prices since 2011!
Supply and Demand
Coincidently higher commodity prices = higher land values. More farmers are looking for more land to farm because of the rise in corn and bean prices; which drives demand up. However, there is still a shortage of available land for sale creating low supply. Now I’m not an economic wizard, but I did take a few economy classes at Iowa State University while in college and what I learned was; when there’s low supply and high demand that equals higher prices. Just like what we are seeing with land auctions right now.
Are you looking to finally retire from farming and would like to enjoy all your hard work? Have you recently inherited some land and looking to sell all or part of it? Needing to downsize your operation?
The key is, if you are slightly even thinking of selling farmland, do it now before everyone gets the right idea too! As a seller you want to sell while there’s still a low supply. Once more land comes to market in the Fall and after harvest, we might see a dip in prices than right now currently while supply is low.
So, if you’re thinking you want to sell now while the market is hot – I can help you adjust terms and conditions of your auction to reflect rent income or crop income for selling to a new owner half way through the crop season this summer.
I’ve been selling land for two and a half years now and have never seen such high land auction prices! I have the tools to help you sell land by live auction, online timed auction, or even listing at DreamDirt Farm and Ranch Real Estate, LLC. I can help you get started with the selling journey by creating a proposal and scheduling a free consultation with you! Fill out my questionnaire to get started!