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Successful Land Sale: Black Hawk County, Iowa, Land Averages $9,562 an Acre
It’s interesting to see how a presidential election affected the bidding on 187.6 acres of Black Hawk County, Iowa, land November 10.
Cal Wilson, salesperson at Hertz Farm Management and Real Estate, says two prospective buyers wound up not participating in the sale, due to concern about which direction interest rates are heading. But not to worry – there were plenty of other potential buyers.
“It was a strong sale,” Wilson reports. “We had multiple bidders and reached the selling price of Parcel 1 pretty quickly.”
The sale featured two tracts located 7 miles east of Waterloo. The farms are adjacent to each other and mostly level, with a slight roll. Both tracts are pattern tiled, although more tile could be installed.
Here are more details:
- Tract 1: 117.16 acres of tillable ground, featuring Marquis and Clyde-Floyd soils with a Corn Suitability Rating 2 of 90.2 (based on a scale of 6 to 100). The tract has 4.02 acres enrolled in the Conservation Reserve Program, paying $1,005 annually through 2021. It sold for $1.1598 million ($9,900 per acre).
- Tract 2: 70.44 tillable acres adjacent to tract 1, has Marquis and Clyde soils with an 82.1 CSR 2. There are 2.59 acres in CRP, paying $647 per acre through 2021. This tract has a drainage ditch that cuts off 9 acres from the main field. The buyer plans to install a crossing to that portion of the farm. It sold for $633,960 ($9,000 per acre).
Wilson says Tract 1 is a very good piece of ground, and its size made it more desirable. He was concerned that the reduced acreage of Tract 2, plus the drainage ditch, would scare buyers off, but that proved to be unfounded. A retiring farmer bought both tracts.
The 10-year average corn yield in Black Hawk County is 171 bushels per acre; soybeans, 51 bushels per acre, according to Iowa State University. Land in the county averaged $9,100 per acre in 2015, with cash rent averaging $240 per acre. Wilson anticipates the farm could fetch $300 per acre in cash rent.
For more information on this tract, view the full AcreValue report.
Best of the Rest
Indiana, Marshall County: Four tracts totaling 355 acres sold November 10. The land is mostly contiguous, located north of Culver, and features mostly Oshtemo and Rennselaer soils. Tract 1, 260 acres, has 248 tillable acres with the rest in woods and right of way. It has two irrigation systems, and 175 acres of irrigated land. Tract 2, 47 acres adjacent to Tract 1, has 45.8 acres of tillable land. Tract 3, 16 acres next to tracts 1 and 2, has 14.8 acres tillable. Tract 4, 32 acres, is 100% tillable across the road west from the rest of the farms. The land sold as one unit for $2.4 million ($6,761 per acre). Halderman Real Estate Services had the sale.
Nebraska, Pawnee County: 160 acres southwest of Pawnee City sold November 9. The tract has 152.93 acres of rolling tillable land with mostly Class III Pawnee and Wymore soils. It sold for $512,000 ($3,200 per acre). Farmers National had the sale.