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Successful Land Sale: Northern Iowa Ground Tops Out at $8,300
Since the great land price correction of 2015-2016, we’ve heard from auctioneers that prices for farmland have declined roughly 10% to 15% throughout the Midwest. We’ve also heard that what keeps land prices strong is top-quality farmland, while lesser-quality ground is tanking the most.
The sale of 233 acres in Cerro Gordo County, Iowa, on July 29 is a prime example. Two of the three tracts are good to very good farmland, while one lower quality piece did not fare as well.
- Tract 1: 76.9 acres, with 66.9 crop acres and the rest in trees and CRP, paying $1,289 per year. The soil types are mostly Lester loam, Coland clay loam, and Clarion loam. The tract has a Corn Suitability Rating of 74.8 (based on a 0-to-100 scale). It sold for $600,600 ($7,800 per acre).
- Tract 2: 80 acres, with 55.3 in cropland and 17.8 acres of CRP, paying $3,441.75 per year. Soils include Harcot loam, Lawler loam, and Saude loam for an average CSR2 of 58.1. It sold for $352,000 ($4,400 per acre).
- Tract 3: 76 acres, with 69.9 in cropland and the rest in CRP, paying $792.62 per year. Soil types are mostly Clarion loam with a CSR2 of 87.3. It sold for $630,000 ($8,300 per acre).
In Iowa, the benchmark for farmland sales is about $100 per CSR2 point. If that’s the case, this sale was right in line.
Land in Cerro Gordo County averaged $7,974 per acre in 2015, and cash rent averaged $251 per acre. The 10-year average corn yield is 167 bushels per acre and soybeans are 48 bushels per acre, acorrding to Iowa State University.
The sale was handled by Behr Auction Service.
Best of the Rest
Minnesota, Martin County: A 150-acre tract southeast of Sherburn sold August 2. The tract has 148 acres of tillable land, with the rest in waste. It has a 91.7 Soil Productivity Rating. The tract will be free for the 2017 crop year. The land sold to a local farmer for $952,500 ($6,350 per acre). Howell Real Estate and Auction had the sale.