Mid-Year Land Auction Results Indicate “Intensely Aggressive” Market Conditions
Posted on 07/21/2021 at 09:22 AM by Jim Rothermich
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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Need a farmland appraisal or have questions? Call me! 515.777.7083