Farmland Auction: Mitchell County, Iowa, Auction Brings $6,900 Per Acre
The sale of 155 acres of Mitchell County, Iowa, land August 20 netted $1.069 million, or $6,900 per acre.
Located just northeast of the town of Mitchell, the farm is a good piece of ground with a Corn Suitability Rating of 81.9 (based on a scale of 0 to 100). It has 148.3 acres of tillable land, featuring mostly Dinsdale silty clay loam soils. “The 81.9 CSR 2 speaks for itself,” says auctioneer Dennis Behr.
There is 7.2 acres of the farm enrolled in the Conservation Reserve Program, paying $1,655 per year through 2024.
The farm has nearly 28,000 feet of pattern tile on the east side.
Though planted to corn and soybeans for 2019, there is no lease for 2020.
There are just two problems with the property, says Behr, with Behr Auction Service of Rockwell, Iowa: one, a railroad slices through the northeast part of the property, leaving about 26 acres isolated from the balance of the tract. Two, “The market,” he says. “Every year is taking a toll.”
Still, the owners were happy with the sale proceeds, Behr says.
In Mitchell County, the 10-year average corn yield is 182.6 bushels per acre, with soybeans averaging 51.5 bushels per acre. The average CSR 2 is 84, according to NRCS.
How do you know?
It’s hard to describe this land market, Behr says. Farmers are struggling, with trade wars and now, drying up ethanol markets influencing price paid for land.
“How do you know? Every day is different. Every county, and every township is different,” he says. “It’s common sense. If farmers are losing money, they won’t spend it on land.”
Yet some farmers may have some money salted away for the right farm, he adds. “It’s supply and demand. If they want to buy, and there’s not much to sell, they bid more.”
Behr says his firm has been busy this fall, and continues to have land sales booked through September.
Miami County, Indiana, property nets $5,320 per acre
Halderman Auction sold three tracts totaling 159.25 acres at auction Aug. 20. The land is in a contiguous block, located 8 miles south of Peru. Soil types are mostly Blount silt loam and Pewamo silty clay loam. The land is mostly level. Tract 1, 126 acres, has 115 tillable, 9.24 in woods, and the rest in recreation. It sold for $670,000 ($5,320 per acre). Tract 2, 17.3 acres, is all tillable and brought $110,000 ($6,358 per acre). Tract 3, 16 acres of woods, brought $40,000 ($2,500 per acre).