Ann's Monthly Land Update! David’s Instructions While He Is Away….No Talking Cows….Keep On Task With Farmland Markets!
As I am mixing feed for the cattle tonight (there I said it), I hear the combines running in the fields. Harvest is in full swing here in Iowa and we are already hearing of stronger yields than expected. That is always a good thing to hear from our farming families.
The interest in farmland continues and the question now is will we see more farms hit the market than last November? November historically has always been one of the most popular months for land sales. But why? Here are several reasons. Some believe it is because after harvest there is more jingle in the pockets with full bins and so that is a good time to sell…happy people spend money. “Full bins sell farms!” Others think it is because of the timeline from when lease terminations are served in September and then the timeline to market the farm puts you at a November auction sale date. Then lastly you can look at it from a financial standpoint, real estate closing standpoint, and tax implications purposes with a November auction it gives just enough time to get the closing completed by the end of December to meet seller's and buyers’ goals before the end of the year.
Two frequently asked questions are, “When is the right time to sell?” or “When is the right time to buy?” Unfortunately, we do not have a crystal ball and you being in the farming/livestock/ag industry know that our way of life is always changing with the markets, weather, and health of ourselves and our livestock. So, the only answer I can give is this, “When it is right for you!” Only you know when you are ready to let go of the farm or when you can make it work to buy a farm that comes to market in your area. The thing to keep in mind is that we do know what the markets and interest rates are doing now. We don’t know what this next year will bring. So if you are ready to sell, sell now. Buyers be ready for the November rush! Start making plans now. I wish you all a safe and bountiful harvest season!
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!