cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Senior Contributor

Iowa Farm Auction- Low Quality Farmland

It is important to watch what extremely Low-Quality Farmland sells for. Below is an Auction for some very low-quality dirt in Iowa. Even dirt of this poor soil quality brought over $8,000/acre. Auction link is below:

 

 

https://www.youtube.com/watch?v=lrgdOHqWv1A

0 Kudos
4 Replies
Highlighted
Honored Advisor

Re: Iowa Farm Auction- Low Quality Farmland

I don`t that you can call 64 CSR "very low-quality", depending on how it got the rating you can get 200 bushel of corn in most years around Klemme though it could be some sandy stuff...I don`t know.  Actually IMO it might be easier to pay for at $8300 than some of that +95 CSR that brings $6300 more. 

 

If it had the lower CSR because of a wetter soil type and recently had some tiling done, it might`ve been a good  deal.  But if the buyer had to borrow some of the money, it could be some challenging years ahead.  Cause this Janet Yellen is kind of going off script for us here  Smiley Happy

0 Kudos
Highlighted
Senior Contributor

Re: Iowa Farm Auction- Low Quality Farmland

Yes, your right on the quality of the dirt. A 64 CSR Rating is not the bottom of the barrel in regard to dirt quality. I was comparing it to land in my part of Northern Iowa. Most of the dirt is around 80 to 85 CSR Rated, about 20 CSR Points higher than this 64 Rated farm that sold. But depending on how the drainage is, it might be an Ok deal for the $8,300/acre price it sold for and maybe could yield 200 bushels/acre with good weather. I know in far southern Iowa by the Iowa/Mo border alot of farmland is rated a 50 or less on the CSR Corn yield scale. Yes, the CSR Corn yield scale is just one part of the overall yield potential. For example, Nicolent Loam soil has a 88 CSR Rating when it has 0 to 2% slope. However, if the slope drops to 4-6% on the same Nicolent Loam soil, the CSR Rating drops to under 65. So in the CSR Scale, not just the soil type factors into the CSR Scale, but the slope of the farmland is also factored into the overall CSR Rating of the farm. Higher Slope values can decrease the farms overall CSR Rating. But in general, the overall farm's CSR Rating is just one factor in many other factors that affect a farm's corn yield potential. It is really just a scale to compare farms with other farms when you are trying to purchase farmland. However, the CSR Rating and the tile maps are 2 of the most important things to look at when buying Iowa farmland.

0 Kudos
Highlighted
Advisor

Re: Iowa Farm Auction- Low Quality Farmland

March 8th 88 acres m/l Dallas County, Iowa - Prime Farm ground w/CSR 85+

SOLD $9,250/acre

 

Down from a year ago.

 

0 Kudos
Highlighted
Senior Contributor

Re: Iowa Farm Auction- Low Quality Farmland

Interesting, that Iowa county has alot of Class A dirt with CSR Ratios of 80+.. The price is reflective by the per acre price/CSR Ratio of around $107 per CSR Point. This would put Class B Iowa farmland of a CSR Ratio of 70 at only $7,490/acre. We would have to look deeper into why this 85 CSR Ratio dirt sold for a relatively cheap price. Perhaps it needs alot of tiling or it lacks something that is limiting it's full corn yield potential. CSR Ratios are just 1 factor to look at when buying Iowa farmland. Most of the Class A Iowa dirt with CSR's over 80 are selling for a Price/CSR Ratio of over $150 per CSR Rating. Thanks for the information WIND.

0 Kudos