Welcome to Land Talk Weekly!
Posted on December 7, 2016 at 8:00 AM by Jim Rothermich
Greetings! Today is my first day with Iowa Appraisal and Research Corporation, and I’m very excited to be here! I have been blogging about Iowa land auction results for some time, in response to clients wanting up-to-date land price information – in real time. “Land Talk Weekly” is a means to keep current on land price information without the time lag that often occurs with surveys published by various organizations. I like blogging about auction results because the information is factual with little time lag from the time of the auction and the blog. I will be posting blogs on a weekly basis about the prior week’s auction results. My blogs will be for farmland sold at public auction. This is the best way to gauge the Iowa land market with the sales having the same market exposure (public auction). I will also be giving a brief commentary on the auction results to keep you informed on what the market is doing. To get auction results as they happen, follow me on Twitter (@TheLandTalker) or subscribe to my monthly Iowa land auction results email (click here).
Currently, based on conversations with realtors & analyzing auction results, the land market is holding up surprisingly very well despite all the bearish news being reported about lower net farm income and low commodity prices. How can this be? I think part of the reason is very little inventory is currently for sale. There is a little over one farm per county in Iowa for sale that is over 85% tillable. Low supply for sale and strong demand is keeping prices stable. Another factor adding stability is the large harvest of corn and soybeans. I have visited with farmers that said this year produced the best yields they have ever had in their farming career, especially for soybeans. I have heard a lot of yields of soybeans ranging from 60 bushels per acre all the way up to 90 bushels per acre. Soybean prices have been very strong as well due to large export demand. China looks at our soybeans as a good buy. They are compared to alternative oils, such as palm oil. The high yields of corn and soybeans plus the strong soybean prices have added stability to the land market. Livestock producers, cattle and hog feeders are struggling now with negative margins. This will correct itself. Nothing cures low prices better than low prices.
I look forward to blogging about the Iowa land market. I’m confident you’ll learn something, so be sure to read my blog on a weekly basis. “That’s my story and I’m sticking to it!”
Jim “the Land Talker”
Monthly auction result email: Click here to subscribe.