Iowa farmland sale hits record $21,900 an acre

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

As the Midwest struggles with the ripple effects of this year's devastating drought, farmland prices in Iowa hit a new record high on Thursday when an 80.47-acre parcel sold for $21,900 an acre, the auction firm that handled the sale said Friday.

The parcel is located in Sioux County near Boyden, Iowa, about 42 miles southeast of Sioux Falls, South Dakota. The sale soared past last year's record price tag of $20,000 per acre which was set in an auction for a 74-acre parcel held in the same county in northwest Iowa.

Thursday's buyers were neighboring farmers, said a spokesman for Vander Werff and Associates Inc which ran the auction.

The sky-high prices underscore how demand for Iowa farmland has remained strong, given that commodity crop yields fared far better in the Hawkeye State than in other parts of the nation's Corn Belt this summer.

Given that crop prices hit historical highs this summer, these somewhat larger yields gave some Iowa farmers an economic boost and added to the record income levels they enjoyed in 2011, said Michael D. Duffy, professor of economics at Iowa State University.

Whether Iowa's land values will continue to rise, though, will depend on the weather, he said.

"If you look at what the prognosticators are saying that I look at, the predictions for corn prices range from $4 to $9," Duffy said. "If we get moisture this winter and spring, the prices will fall back for land. If we don't, they'll stay up."

Iowa farmland prices have risen steadily in recent years. The value of tillable land jumped an average of 7.7 percent in the state over the past six months, according to a recent farmland survey released by the Iowa Farm & Land Chapter #2 Realtors Land Institute.

The value of Iowa crop land for potential corn production increased nearly 21.9 percent over the 12 months ended in September, according to the survey.

Thursday's sale was far from an anomaly in Iowa in recent weeks. Earlier this week, a different piece of farm property sold for $19,100 in Sioux County, home to dairies, swine farms and livestock feed lots that need land to disperse the manure.

Earlier this month, a tract near Carroll, Iowa, reportedly sold for $16,000 per acre.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (1) Leave a comment 

e-Mail (required)


characters left

Eric Christianson    
ND  |  November, 01, 2012 at 04:23 AM

I don't care what your growing legally, you cannot get an honest banker to loan you money to buy farmland at this price! It does not cash flow.

Aluminum Grain Trailers

Maurer Manufacturing offers a complete line of high quality aluminum grain trailers. Manufactured in Spencer, Iowa, Maurer aluminum grain trailers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form