Hunting to Harvest!
I spent most of this month hunting in Montana. When I go west to refresh my brain every year, I am reminded of why so many people have a love for the land; myself included. It is no wonder why people want to own it and/or have the desire to own more of it. There is just something about the sense of freedom that the land gives you and being a part of something much bigger. Yields have come in and the farmers I have talked to are more than pleased. The commodity markets are strong, and the farmland markets are staying steady! We are still seeing some record prices across Iowa. There are more acres coming to market than we have seen in years. This is a great time to expand your operation and invest in your farming operation.
Interest rates are still on the rise and the Feds just increased their rate .75%. I do not feel that raising the interest rates will correct inflation. Our inflation problem is coming from low supply…in everything (the trickledown effect)! In the short term, the rise in rates will drive more people to buying farmland. This may create a rise in cash rents. If the interest rates continue to rise, we may see some people exit farmland as they will get a better short-term rate in cd’s and bank accounts.
As we continue through the 4th quarter, we will see a lot of land hitting the market. This land will come with mixed results based on location. I feel that although stable, there will be some location-based volatility in the market. If you have a strong buying market due to local competition, you will see some great results. If your area does not have any competition, the prices you see may be lower.
Results from the 154 Auctions (17,902 acres) this last month have the average for the state at $11,809/acre, high quality ground at $13,913/ acre, and medium quality ground averaging $9,761/ acre. Low quality ground has remained steady at an average of $6,052/ 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!