Iowa Land Auction Prices, March 5-11, 2022

Sioux County tops the market this week at $23,000 per acre, with honorable mention going to Hancock County with a sale at $18,500/acre.

The Ukraine-Russia war has grain markets erupting. Ukraine, “Europe’s Breadbasket,” has climate roughly like Kansas, slightly drier and cooler during the summer and colder and wetter during the winter, but close enough for comparison. The weather is suitable for both winter and spring crops. Average annual precipitation is approximately 24 inches, and during the growing season is approximately 14 inches. Amounts are typically higher in Western and Central Ukraine and lower in the south and east. Of Ukraine’s 60 million hectares, roughly 42 million are classified as agricultural land (1 hectare=2.471 acres) which includes cultivated land (grains, technical crops, forages, potatoes and vegetables, and fallow), gardens, orchards, vineyards, and permanent meadows and pastures. Winter wheat, spring barley, and corn are the country’s main grain crops. Sunflowers and sugar beets are the main technical and industrial crops. Agricultural land use has shifted significantly since Ukraine declared independence from the Soviet Union in 1991. Between 1991 and 2000, sown area dropped by 5% and area decreased from almost every category of crop except for technical crops (specifically sunflowers). Forage crop area plunged by near 40%, concurrent with a steep slide in livestock and feed demand. (Source: World Data Center - January 18, 2022)

What is happening in Ukraine and Russia has and will significantly affect grain U.S. markets. If crops cannot be planted or harvested in these countries, there is potential for a global shortage of grain. These events will affect land prices. I will share more information in the coming weeks.

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

Jim “the Land Talker”

Jim Rothermich, MAI, ARA, ALC
Iowa Appraisal
theLandTalker@iowaappraisal.com ∣  @theLandTalker

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