Successful Land Sale: Central Iowa Land Reaches $12,700 per acre
A lot of factors went into play in the nine-tract, 1,235-acre land sale that Farmers National Company in Iowa's Carroll and Green counties August 26. First, there was a public reserve placed on each tract. Second, as all the properties were within 10 miles of Scranton, this sale represented a lot of land to come up at one sale. There was a chance these dynamics would dilute the selling price of some of the land, says Adam Pick, farm manager at the company.
However, when the gavel fell for the last time, the sell netted $10.45 million, or $8,295.55 per acre. That's down a bit from last year’s average price of $8,949 per acre in Carroll County, but up from the $8,257 per acre in Greene County.
"Placing a large number of acres on the market in a relatively small area can hinder the amount of potential buyers and overall land values per tract. Accompany that with the current dwindling commodity prices, and I believe that the total dollar amount achieved was a success," Pick says.
Here’s how the sale went:
- Tract 1: 129.1 acres, with 118.1 acres tillable, 4.5 acres in waterways, and 6.5 acres in noncrop. Soil types include Nicollet and Canisteo, with a Corn Suitability Rating 2 (CSR2) of 88.0, based on a 0 to 100 scale. It sold for $1.162 million ($9,000 per acre).
- Tract 2: 107 acres, with 106.1 tillable, featuring Nicollet and Clarion soils, and a 86.9 CSR2. It sold for $920,000 ($8,600 per acre).
- Tract 3: 243.3 acres, with 218 tillable, 11 pasture, 4.5 acres in waterway, and the rest nontillable. It has Nicollet, Calco, and Coland soils, with a 75.4 CSR2. It sold for $1.459 million ($6,000 per acre).
- Tract 4: 52 acres, with 48.2 tillable, 1.5 acres in waterway, and the rest in noncropland. It features Calco and Mayer soils, with a 74.0 CSR 2. Tract 4 sold for $312,000 ($6,000 per acre).
- Tract 5: 233.7 acres, with 226.5 acres of cropland and 7.2 acres in noncrop. Soils include Nicollet, Webster, and Clarion soils, with an 84.6 CSR2. There are two Lindsay center pivot irrigation systems; one 7-tower with a 80-hp. motor and 700-Gomez well; the other a 10-tower, with a 90-hp. motor and 600-Gomez well. It sold for $1.753 million ($7500 per acre).
- Tract 6: 155.5 acres, with 151.5 tillable and the balance in noncrop. There are Clarion and Nicollet soils, with an 85.1 CSR 2. It sold for $1.975 million ($12,900 per acre).
- Tract 7: A homestead and 4.5 acres. It sold for $156,000.
- Tract 8: 160 acres, with 121.5 acres in cropland, a 32.3-acre pasture, and the rest in noncropland. It has Clarion and Webster soils with a 78.3 CSR2. It sold for $1.208 million ($7,550 per acre).
- Tract 9: 150 acres, with 142.3 acres of cropland, 5 acres in waterway, and 2.7 acres in noncropland. Soil types are Nicollet and Clarion, with a 83.9 CSR 2. It sold for $1.5 million ($10,000 per acre).
In the last 10 years, corn yields in Greene County have averaged 168 bushels per acre and in Carroll County, 170 bushels per acre, according to Iowa State University. Soybean yields over the same period for Greene County are 48 bushels per acre and for Carroll County, 50 bushels per acre.
Best of the Rest
Kansas, Chase County: 317.02 acres of native grass in the Flint Hills sold August 26. Located west of Cottonwood Falls, the land sold as one tract. It has an average fence, water from four ponds, and a spring. The draws have timber. It sold for $602,338 ($1,900 per acre). Griffin Real Estate and Auction had the sale.
Indiana, Howard County: 93 acres northwest of Kokomo sold August 30. The tract has 83.44 acres tillable, with the rest in woods and nontillable land. Soils included Brookstone silty clay loam and Fincastle silt loam. The property sold to a farmer/investor for $725,000 ($7,796 per acre). Halderman Companies had the sale.