Mid-Year Land Auction Results Indicate “Intensely Aggressive” Market Conditions

According to statewide auction results tracked here at Iowa Appraisal, data indicates Iowa land market prices are up 25% from six months ago.

The statewide weighted average price for tillable farmland is $145 per CSR2 point for the period January 1 through June 30, 2021, up 25% from $116 per CSR2 point on December 31, 2020. Price per acre for the same period increased from $8,690 to $10,785. The data suggests market conditions in Iowa have been “intensely aggressive” the last six months.

*Calculated over 23,900 acres, 235 auctions focused on vacant and/or minimal
improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

Reasons for the drastic change in market conditions:

• Grain prices well above breakeven
• 2020 harvest better than expected
• Large amount of government payments
• Historically low interest rates
• Increase in pool of buyers due to inflation
• As an asset class, land steadily performs when the stock market is volatile
• Demand to buy far exceeds supply for sale

If  you have questions, or if you need a professional appraisal for your farmland, please give me a call – 515.777.7083.

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

Jim “the Land Talker”

Jim Rothermich, MAI, ARA
Iowa Appraisal and Research Corporation
theLandTalker@iowaappraisal.com ∣  @theLandTalker

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