Iowa Appraisal

Iowa Land Auction Prices, June 2-8, 2017

Posted on June 12, 2017 at 9:00 AM by Jim Rothermich

Greetings!  More acres of land were offered at auction this week compared to last week’s results.  911 acres were auctioned, of which 802 acres were tillable.  All farms sold.  The market is strong. Here are the highlights:

  • 37 acres sold in Cass County- $2,500/acre- 32 tillable acres- CSR2- 60.0
  • 174 acres sold in Polk County- $22,500/acre- 171 tillable acres- CSR2- 88.0 (Development)
  • 348 acres sold in Lee County- offered in three tracts:
    • 33 acres- $14,200/acre- all tillable- CSR2- 79.0
    • 80 acres- $8,900/acre- 65 tillable acres- CSR2- 59.0
    • 235 acres- $4,250/acre- 171 tillable acres- CSR2- 57.0
  • 250 acres sold in Des Moines County- offered in two tracts:
    • 77 acres- $6,300/acre- 73 tillable acres- CSR2- 82.0 (Mississippi River Bottom)
    • 173 acres- $4,050/acre- 155 tillable acres- CSR2- 70.0 (Mississippi River Bottom)
  • 102 acres sold in Henry County- $11,000/acre- all tillable- CSR2- 80.0

Iowa cash rental rates decreased 4.8% in 2017, according to the annual Iowa Land Value Survey issued by Iowa State University.  The survey is comprised of farm operators, landowners, ag lenders and professional farm manager. Findings show statewide average cash rent declined to $219 an acre for 2017, marking the fourth consecutive year of decreases. This year’s average is down 18.9% from the high of $270 an acre marked in 2013 (see chart below). The percentage decrease nearly matches the cumulative 17.4% decline in the value of farmland reported in the 2016 Land Values Survey. The 18.9% decline from the record high is only a third of the cumulative decrease in the price of corn from the 2012/13 high to current prices, notes ISU Extension Economist Alejandro Plastina. This year’s average is $5 higher than the $214 statewide average found in the 2011 survey.  Although values declined on average, the southeast crop reporting district reported a 1.5% increase in average cash rent to $204 an acre. The north-central district posted the steepest decline for all districts of 10.3% to $218 an acre, down from $243 a year earlier.  On a land-quality basis, cash rent for high-quality cropland declined 5% from $270 an acre in 2016, to $256 an acre in 2017. The average cash rent for high-quality cropland is down 21.9% from the 2013 high. Medium-quality land decreased 4.6% from $230 per acre in 2016 to $220 in 2017, and is down 18.9% versus 2013. Low-quality land experienced a 4.4% decline, from $191 per acre in 2016 to $183 in 2017, accumulating a 13.9% decline since 2013. (Source:  Ag Web)

“That’s my story and I’m sticking to it!”  Please check back next week to see what the Iowa land market is doing.

Jim “the Land Talker”

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