Farmland Prices | Iowa Land Values
Farmland Prices down just a tick in January 2018
Farmland Prices were a bit lower with the average for January at $6,865/acre statewide. On the other end of the spectrum; we also saw the highest sale for the year in Sioux county Iowa at $18,360/acre. We are hearing from bankers around the state that farmers are still in comfortable shape as they have bushel’d their way through 2017. Balance sheets are remaining strong but cash flow positions are tighter which is bringing into play more “Sale-Leaseback” options. This is where the farmer sells a parcel of land to an investor and then leases it back. A situation like this provides the investor instant cash flow and allows the farmer to reduce debt or inject cash into their working capital. This helps the farmer find a solution to a tight cash flow position and the investor an opportunity for a “solid earning asset.” There is still a low inventory of farmland, but there are some excellent properties coming up for auction in February.
David Whitaker | Iowa Land Guy