North Central Iowa Farmland Values January - June 2023
North Central Iowa Farmland Values
Let’s talk about something we are very passionate about, Iowa dirt! Cody and Nick Skinner broker the sale of farmland in North Central Iowa for their family owned business, Iowa Land Company. It’s our fiduciary duty to know the market inside and out, so we track each and every sale on a monthly basis. Below is a summary of North Central Iowa farmland values are trending within the region.
The average price of farmland that sold in North Central Iowa during the first two quarters of 2023 was $12,300 an acre. There were 28 auctions with a total of 2,540.25 acres offered for sale. Of the 28 auctions, the average CSR2 point was 77.3 which is nearly exactly what the average CSR2 point for the nine counties located in North Central Iowa Cody and Nick Skinner broker the sale of farmland in. The average CSR2 point for Worth, Mitchell, Howard, Cerro Gordo, Floyd, Chickasaw, Franklin, Butler, and Bremer Counties is 77.5. Four of the twenty-eight auctions were not used in the regional averages because three of the sales were sealed bid auctions which means prices of these sales have not been disclosed to the public. The lone other sale did not meet the sellers expectations, therefore resulting in a no sale. Let’s now look at what land prices are doing per county, see below.
Worth and Floyd County did not have any land auctions during the first two quarters of 2023. Chickasaw County on the other hand, had 1,235.27 acres of the 2,540.25 acres offered for sale in the region and surprisingly the market handled the influx of acres to the market well. The average sale price for the eleven farms sold was $12,343 an acre or $142 per CSR2 point. The farms east of New Hampton, Iowa were the highest priced farms that sold in these counties. The March 14, 2023 sales sold for $20,000/acre and $17,000/acre.
Another strong sale was a farm that sold in Western Bremer County about five miles north of Waverly, Iowa on 170th Street for $16,100/acre. The lowest average county CSR2 point was $135 and just above $11,000 an acre was in Franklin County. However, this was not a very good average for the county because the average CSR2 point is 80.7 and the average of the four tracts of land offered for sale during this timeframe was only 74. See all sale results listed below.
North Central Iowa Recent Solds
Franklin County, Iowa 160 Acres
Bremer County, Iowa 205 Acres
Worth County, Iowa 87.4 Acres
Market Prediction
I can’t believe we have flipped the calendar to July 2023 already, time is flying by. Corn across the state is tasseled and beans are flowering. It won’t be long before farmers start thinking about harvest, but, until then, there will be more farm sales. We have six land auctions across the state coming up just in the month of August, for the entire list of upcoming sales visit our auction page, here. It’s our prediction that land prices will hold firm throughout the rest of 2023 which is hard to believe given interest rates have doubled in the last 12 months, commodity prices are off 25% from our recent highs, and we have had one of the driest May and June on record. June 2023 had the second highest number of acres brought to market across the state since 2018. June is typically one of the slower volume months for farms hitting the market. Data suggests sellers are bringing their farms to the market that are thinking about selling. If you’re thinking about selling you might consider being one of the first to offer your farm to the public in your immediate neighborhood and decide to sell sooner rather than later.
Free Broker’s Opinion of Value or Farmland Appraisal
You should be aware the data above is only compared to 28 farm sales in nine counties located in North Central Iowa. I encourage you to not compare the sales above data to your property. There are not two identical farms in the state of Iowa, let alone the county your property is located in. If you are interested in knowing what your Iowa property is worth, we offer a free broker’s opinion of value report for land in all 99 counties across the state. Get in touch with the broker that services the territory your property is located in by calling (515)962-5948 or emailing info@iowalandcompany.com If you would like a certified appraisal contact us today, we will be happy to put you in touch with an Iowa Land Company certified appraiser.
