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tree fmr
Advisor

Interesting farmland sale

Attended a farmland sale yesterday, east central Iowa.  157.55 acres, CSR 60, no buildings, been in CRP since 1984, and available to farm this year.  Not sure if any tile or not.  The interesting part was only one bid $8500 per acre.  It took the 3 sellers over an hour to decide if they were going to take the bid, which they did.  Not a bad thing, the bank had cookies to eat and I got to visit with some farmers I had not seen for many years!

Was the initial bid too high or are farmers getting nervous commodity prices are going to keep going down?

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21 Replies
BA Deere
Honored Advisor

Re: Interesting farmland sale

It was probably enough, don`t you think? $140/CSR point on CRP land with how many yrs on the contract and ify tile.  Auctions are funny, someone may have tried to buy it for $8500 before hand and knew that was the bottom dollar and tried to shock and awe with their opening bid.

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minnisota
Veteran Contributor

Re: Interesting farmland sale

How many bu corn can ya grow on 60csr ground

 

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rayjenkins
Veteran Advisor

Re: Interesting farmland sale

The buyers are noted for being good operators and making wise decisions..

 

I suspect there was a method to the perceived madness!

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rswfarms
Senior Contributor

Re: Interesting farmland sale/60 CSR/$8,500 ACRE

Hmmm. 60 CSR is a little low, that would be low CLASS B Dirt. But a $141 per CSR Point seems ok for this type of farmland. 80 CSR Dirt is going for $180 per CSR Point, plus it is well-tiled too. Yes, $8,500/acre seems a fair price for Conservation Reserve land, when is the CSR contract up? That makes a difference.

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Jim Meade / Iowa City
Senior Advisor

Re: Interesting farmland sale/60 CSR/$8,500 ACRE

OP said is was avaible to farm this year, so my assumption was the contract was either out or not renewed.

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Faust100F
Advisor

Re: Interesting farmland sale/60 CSR/$8,500 ACRE

rsw - they are "smart operators" . . . LMAO!   John

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rswfarms
Senior Contributor

Re: Interesting farmland sale/60 CSR/$8,500 ACRE/JIM

Thanks Jim on the CRP information on this $8,500/acre dirt. A 60 CSR Rating could maybe hit 160 to 175bu corn yield given good weather, but it is really tough to give a corn yield range without seeing the farmland. So this corn yield prediction of mine is just a guess on my part.

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rswfarms
Senior Contributor

Re: Interesting farmland sale/60 CSR/$8,500 ACRE

Pretty funny Faust!!!!!!!!!!!

Say, we got 10 inches of snow yesterday in the Twin Cities, man, this winter is really dragging out here in MN!!!!!!!

All the children are getting spring fever, my one kid was supposed to have a track meet tonight, but they cancelled it due to the snow on the track. Low temp tonight in the Twin Cities of 19 degrees, yes, what a huge change from last year. How are things looking like south of I-80 in Iowa, you don't have any guys planting down there, do you?????? Thanks!!!!

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tree fmr
Advisor

Re: Interesting farmland sale

Minnisota, A perfect year can grow 200 BPA. Last year my 60 CSR farm averaged 150. This was corn following beans and all no till. Last field planted and came up uneven due to lack of moisture. Had corn just coming out of the ground and knee high within 3 feet of each other. How it ever averaged 150 is a mystery but I will take it!
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