NOVEMBER 2022 IOWA FARMLAND VALUE

Decision Making!

December and into the first part of January are when I feel like we all take time to make decisions that will affect the upcoming year. Should we sell? Should we buy? Should we trade equipment? What worked or what didn’t work? How are we sitting for taxes? How was our profit? Should we change anything? What seed should we use? Do we contract forward? Will we be able to get fertilizer? Should we modify our practices? Should I retire? So many questions! The number one question I keep getting asked is this, “Will the land market stay steady?”

Let’s look at the data behind the decision!

Positive factors driving farmland: Good yields, commodity prices, net farm income, equity in the existing land, and a great investment.

Negative factors driving farmland: Interest rates are still on the rise/unstable, 2023 input prices, margin compression, increased volume of farms offered to the market, drought, supply chain, and forging conflicts.

My Thoughts: I, have heard talk that interest rates will drop in the next 8 months. I have seen a slight dip in the medium-quality ground and low-end ground. The high-end farmland that has a great yield potential is staying quite stable. I will say that there is volatility in the farmland depending on its location. The price of your farmland is based upon what the buyers are willing to give and as such; if your farmland is in a strong neighborhood, you have strong prices and conversely low prices in a weaker neighborhood. Overall, I am bullish and feel that the market is not going to back down. It has leveled off and I believe we will stay steady through planting season 2023. Then we may just see another increase.

Results from the 219 Auctions (20,728 acres) this last month have the average for the state at $12,318/acre, high-quality ground at $14,566/ acre, and medium-quality ground averaging $9,690/ acre. Low-quality ground has remained steady at an average of $6,061/ 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!