For Immediate Release:
3/9/2022 Hospers, Iowa – Iowa farmland prices have been on the rise for months, and a new 2022 state record was set at auction by Whitaker Marketing Group on March 8th in Sioux County, Iowa.
Thirty-eight acres of farmland sold in Sioux County for $23,000 per acre or $24,498.60 per tillable acre. "There are a multitude of factors that impact farmland prices." David Whitaker of Whitaker Marketing Group said, "Competitive bidding and utilizing the auction method of marketing is the way to sell your farmland in this market."
"The market is still trending upward," stated Whitaker. "Markets are emotion, and the emotion is strong towards farmland."
We have started to see a rise in farmland prices over the last year. In 2021 the market is up over 35% this year. Overall, there is talk of opportunities in the market for the future. Age, industry, geography, cash, 1031 tax-deferred exchange timelines, foreign trade, banking/USDA, inflation, and interest rates all play a part in the current buyer's decision-making process.
The market is staying stable at these higher prices due to local buying power. 82% of farms in Iowa are owned free and clear. There is a lot of equity and cash available from local Iowa buyers keeping the price of land strong.
There are 35.7 million acres of farmland in Iowa, and it is estimated that 10% of it changes hands each year. In the years to come, we will see one of the most significant transitions of wealth change hands to the next generation. Some may keep the land, and some may sell the land and cash out.
All buyers have one thing in common. They all are interested in land ownership, and they all want to buy more—what a fantastic time to sell. Interest rates are historically low, stock market prices are moving investors to one of the most stable investments, land. Commodity prices are high, and the supply is low!