Iowa land market update!
Iowa farmland is selling and it’s really going to pick up for the rest of the year. The amount of available land for sale will increase. Each year we see a rise in land sales just before harvest, with the majority of sales right after harvest. This is based on farmers knowing how much they need to spend or how much they need to sell. Along with preparing for taxes at the end of the year.
Year-to-date, there has been 26,836 acres offered at auction. There were many sales that sold north of $9,000/acre, $11,000/acre, and $13,000/acre. There has not been any “no sales” at auction for some time. A low supply of farmland for sale is making for a “sellers’ market.”
Check out the current market statistics on our new Iowa Farmland Values Report.
Tillable acres have gone up in price the last 30 days. The value of an acre of Iowa cropland rose 0.9% in the six-month period ending March 1, according to the semi-annual survey conducted by the Iowa Chapter of the REALTORS® Land Institute (RLI). What remains available seems to be selling very well with money coming out of other investments to allow for those purchases.
Corn and beans prices have gone up slightly before the USDA numbers came out and there were a number of contracts filled and grain sold in that small window. This allowed for more cash from last year’s harvest that was sitting in the bin.
Interest rates on land continue to be low with some great rate lock opportunities currently. The interest rate calculations are a bigger deal than many folks realize. Rates will go up at some point and it will raise the annual payment amounts possibly more than what they would be with a lower purchase price. Most banks are loaning 60% on tillable land.
If you, or someone you know, is looking to buy or sell land give us a call (515)-996-LAND (5263)
Keep praying for rain and enjoy the weather.
Iowa Land Guy