To add confusion to the question of if farmland prices has peaked, below is a recent sale in Iowa. The farms overall CSR Ratio was only 78. CSR's of 78 are ok and very capable of 200+ bushels/acre yields for corn and 55+ for beans. However, a 78 CSR Ratio is one step down from 85+ CSR Ratios which I consider to be the cream of the crop for Iowa dirt. A 78 CSR Ratio and a $13,600/acre selling price puts it at $175 per CSR Point. To put this $175 per CSR Point in perspective, in 1986 I was paying around $10 to $12 per CSR Point for the farms I bought in the 1986 to 1989 time period. Yes, that 1986 to 1989 time period was one helluva time to be buying Iowa farmland and was probably a once in a lifetime chance to buy extremely cheap land. Sale is listed below:
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Benton County, IA
3/7/2014
- 200 acres sold for $2,720,000.00 ($13,600.00/A)
