Iowa Land Auction Prices, March 5-11, 2021

Posted on March 15, 2021 at 9:27 AM by Jim Rothermich

Fayette County topped the market this week at $10,100/acre. Profitability in growing corn and soybeans is highly correlated to land prices. If current market prices are higher than breakeven prices, then there are more dollars available to purchase land.

Dr. Alejandro Plastina, extension economist for Iowa State University, shares 2021 breakeven prices in Iowa for corn and soybeans in a recent newsletter for the Ag Decision Maker. The estimated costs of production per bushel for corn following soybeans are $3.34, $3.31, and $3.32 for target yields of 181, 201, and 221 bushels per acre, respectively. The estimated cost of production for continuous corn per bushel is $3.82 for target yields of 184 and 202 bushels per acre. Costs of production estimates for herbicide-tolerant soybeans amount to $9.16, $8.94, and $8.74 per bushel for target yields of 50, 56, and 62 bushels per acre, respectively. The cost estimates are representative of average costs for farms in Iowa. Very large or small farms may have lower or higher fixed costs per acre. The full report is available on the Ag Decision Maker website: https://www.extension.iastate.edu/agdm/crops/html/a1-20.html

Current market prices are well above the 2021 breakeven prices. Demand for commodities is very strong and grain supplies are tight. I don’t see market prices going below breakeven prices for the time being. 2021 should be a profitable year and, if that occurs, land prices will respond positively.

“That’s my story and I’m sticking to it!”

Monthly Iowa land auction results newsletter: Click here to subscribe to email.
Need a farmland appraisal or have questions? Call me! 515.777.7083