BCC Advisers

Land Auction Results Indicate Rising Iowa Land Market

January 15, 2021

According to statewide auction results tracked by Iowa Appraisal and Research Corporation (Iowa Appraisal), indicators point to a rising Iowa land market.

Iowa Appraisal’s farm appraisal expert Jim Rothermich, MAI, ARA shares realtors report the increase in land prices occurred in the last ten weeks of the year. Primary reasons given for the surge include: crop yields not what hoped for but better than expected, corn and soybean prices rallied midway through harvest, historical large government payments, historical low interest rates, a larger pool of buyers looking for a stable investment, and fewer acres coming to the market.

2020 Weighted average (1) price for tillable farmland:    $8,690/acre
2020 Weighted average (1) dollars per tillable CSR2 point:    $116

2019 Weighted average (2) price for tillable farmland:     $8,404/acre
2019 Weighted average (2) dollars per tillable CSR2 point:    $111

2018 Weighted average (3) price for tillable farmland:    $8,378/acre
2018 Weighted average (3) dollars per tillable CSR2 point:    $110

(1) Calculated over 56,511 tillable acres, 554 auctions focused on vacant and/or minimal improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

(2) Calculated over 61,059 tillable acres, 609 auctions focused on vacant and/or minimal improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

(3) Calculated over 62,059 tillable acres, 626 auctions focused on vacant and/or minimal improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

Auctions/acres included in above data sample, by crop reporting district:

Dollars per tillable CSR2 point increased statewide from $111 to $116, or 4.5%, from 2019 to 2020 (left table below). Every crop district had an increase in dollars per tillable CSR2 point except the West Central District, which was the epicenter of the 2020 drought.

About Iowa Appraisal and Research Corporation
Iowa Appraisal and Research Corporation provides agricultural and commercial real estate appraisals, appraisal reviews, market and feasibility studies, as well as research and consulting services throughout the Midwest. www.iowaappraisal.com.

For more information, contact:
Jim Rothermich, MAI, ARA
Iowa Appraisal and Research Corporation
thelandtalker@iowaappraisal.com
515.777.7083

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