What is dubious farmland? Uncertainty! All we have heard for the past month is that interest rates are rising and that farmland is going to come to a crashing halt. We have not seen any indication to a slowdown from our perspective. We have seen increased acres hitting the market and prices continue to stay steady, if not climb. We feel that interest rates will affect the housing market stronger than it will affect the farmland market. When we think of all the things that can affect farmland prices (CSR, farm ability, interest rates, 1031 exchanges, foreign trade, foreign conflict, commodity prices, government programs, MFP, PPP, equipment costs, input costs, equity, and local buying power), we weigh the commodity prices at a 60% value compared to all the other items. As long as we see the grain markets hold strong, we will see the land market do the same. On nearly every auction we book, we get a call prior to the auction to purchase the farm and cancel the auction. The Auction method is the way to sell your farmland. True price discovery! The last 4 farms we have sold have exceeded our expectations as well as any offers received prior to the auction.
Results from the 62 Auctions (5,589 acres) this last month have the average for the state at $12,293 high quality ground at $15,314/ acre, and medium quality ground averaging $9,402/ acre. Low quality ground has remained steady at an average of $6,000/ acre. Our Mission; Is to be your “Trusted Advisors”, Our obligation; is to market your farmland to the largest audience yielding you the most successful outcome!
David & Ann Whitaker | Iowa Land Guy When you think of Farmland Think of US!