Farmland Sale and Auction Results for 2013

[FarmlandNetwork]

Here is a recap of actual sale and auction results for farmland around the Midwest during 2013.

http://www.farmlandnetwork.com/blog_post.php?id=137

We will be updating our blog on a regular basis with farm real estate data.

[rswfarms]

Here are some past farmland sales for Iowa. Most of these farms are only "Average" in quality with a Corn Suitability Rating of 68 to 78 CSRB Points on the CSR2 Corn Yield Scale. However, even at the 68 to 78 CSR2 Points they are certainly capable of growing 200 to 220 bushel/acre corn yields. Listed below for your comparison:

:

Jones County, IA
3/13/2014

• 110 acres sold for $1,204,500.00 ($10,950.00/A)

Benton County, IA
3/7/2014

• 200 acres sold for $2,720,000.00 ($13,600.00/A)

Iowa County, IA
3/6/2014

• 280 acres sold for $3,017,000.00 ($10,775.00/A)

Muscatine County, IA
3/5/2014

• 113 acres sold for $1,356,000.00 ($12,000.00/A)

Dallas County, IA
2/13/2014

• 19.96 acres sold for $307,384.00 ($15,400.00/A)

Linn County, IA
11/7/2013

• 35 acres sold for $427,875.00 ($12,225.00/A)

Linn County, IA
11/5/2013

• 76 acres sold for $942,400.00 ($12,400.00/A)

Scott County, IA
10/30/2013

• 95.7 acres sold for $1,301,520.00 ($13,600.00/A)

Dallas County, IA
10/2/2013

• 77.48 acres sold for $892,957.00 ($11,525.00/A)

Henry County, IA
9/27/2013

• 157 acres sold for $1,931,100.00 ($12,300.00/A)

Story County, IA
9/27/2013

• 156 acres sold for $2,464,800.00 ($15,800.00/A)

Greene County, IA
9/26/2013

• 240 acres sold for $2,904,000.00 ($12,100.00/A)

Guthrie County, IA
9/26/2013

• 100 acres sold for $1,235,000.00 ($12,350.00/A)

Linn County, IA
9/20/2013

• 75 acres sold for $952,500.00 ($12,700.00/A)

Benton County, IA
8/22/2013

• 237 acres sold for $3,341,700.00 ($14,100.00/A)

[Kay/NC]

SIL just came in today, and reported that a local kid had paid $379,000 for a 118-acre tract not far from us.  Not in your ballpark, but enough that I think he will live to regret his boldness for buying it. 

[buckfarmer]

Just went to auction today. Southeast/central Ohio. 127 acres with about 95 farmable. Remander pasture, farmstead, and woods. Average old farm house and some buildings that need torn down. Sold for $640,000.

[rswfarms]

Boy, $379,000 for 118 acres is only around $3,200 per acre. That seems extremely cheap compared to dirt in North-Central Iowa. Even very low quality Iowa farmland that is in the Goverment CRP Program sells for over $6,000/acre. Since CRP dirt/land usually sells for around the price that equals a 5% rate of return based on the per acre goverment yearly cash rent payment. Sometimes the per acre price gets as high as a 3-4% rate of return based on the goverments per acre cash rent payment. CRP dirt is really just the same as a 5% Goverment Bond, but the land can appreciate in value over a 10-15 year time period that a Bond doesn't do. I consider my land in the CRP and Buffer Strip Goverment Programs as really just having a Goverment Bond and not real farmland if you know what I mean. However, having the farmland is something I can walk on,unlike a Goverment Bond, can't walk on the Bond Paper very easily. LOL

[Kay/NC]

Iknow it is " dirt cheap" to you guys, but thst about expresses its potential, too. If you can look back, land like this was sold to us in 1994 for $600 per acre. We bought it to build a big hig farm, so it had more than crop program income potential. Sixty percent is in trees. That would be the default for very poor land in Va, but the mini g pricess left extremely low pH in the subsoil...so trees get about as tall as a man, the roots dissolve, and they blow over.

[4wd]

what is the real estate taxes/acre on that "poor" land?

[rswfarms]

It is always interesting to hear about the differences of land qualitythough out the corn belt or other locations in our country.I remember in the Farm Crisis years and when Iowa Farmland bottomed out in value and that bottom out occured in 1986, then in 1987 land started gaining back some of it's value. In fact, in 1987, Iowa dirt appreciated 19% in value over 1986, However, in Iowa in 1986 you could buy high-quality land that does 220+ corn bushels per acre for only around $900. That same land today sells for over $14,000/acre. But in 1986, you could buy it for $900/acre, put the entire farm in the Goverment Conservation Programs for $120/acre goverment cash rent and not even farm the dirt.That works out to a 13 to 14% rate of return with absolutely zero risk, unless of course our goverment went broke and couldn't make the cash rent payment to you. In 1986, a 14% rate of return on an investment wasn't half bad, plus you also had the chance for this land to appreciate in value, In 1987, your rate of return, plus the 19% appreciation rate equaled 33%. 1986 was a darn good time to be buying farmland, it was just about impossible to screw up.