As I reviewed the past 60 days of farmland sales in early March, it is clear that the market has firmed compared with last fall. Land values are not necessarily trending higher, but the noticeable weakness of last fall has faded.
Why? Several factors seem to be in play.
Since Jan. 1, stronger grain prices have offered profitable selling opportunities for both the old and new crop. Additionally, exports and biofuels have had a strong start to the 2024-25 marketing year, creating demand-driven support as we approach another growing season.
On top of this, direct emergency payments from the federal government are expected before planters roll. This will pump cash flow and meaningful purchasing power back into the countryside. Combined with a smaller supply of farms coming up for sale, these factors have contributed to a firmer land market in early 2025.
On the flip side, some fear potential disruptions to land values due to geopolitical tensions stemming from actions taken by the Trump administration. Although it’s generally not helpful to poke our biggest export customers in the eye, reacting too strongly to daily headlines won’t help to make well-reasoned, high-quality decisions.
Instead, it's important to focus on what is occurring rather than what might occur. Uncertainty is a constant — regardless of the administration or business climate — and making well-reasoned decisions based on known factors is key. For the sales detailed below, these buyers voted that Iowa farmland remains a solid place to invest.
Sioux County. Located south of Orange City, +/- 101 acres recently sold at public auction for $18,500 per acre. The farm consisted of +/- 98 tillable acres with a Corn Suitability Rating index (CSR2) of 86.5, and equaled $220 per CSR2 point on the tillable acres.
Cerro Gordo County. Located southwest of Rockwell, +/- 95 acres recently sold at public auction for $13,575 per acre. The farm consisted of +/- 95 tillable acres with a CSR2 of 86.9, and equaled $156 per CSR2 point on the tillable acres.
Fayette County. Located northwest of Westgate, +/- 155 acres recently sold at public auction for $11,900 per acre. The farm consisted of +/- 155 tillable acres with a CSR2 of 84.4, and equaled $141 per CSR2 point on the tillable acres.
Monona County. Located west of Onawa, +/- 76 acres recently sold at public auction for $7,500 per acre. The farm consisted of +/- 76 tillable acres with a CSR2 of 61.2, and equaled $122 per CSR2 point on the tillable acres. Note: This farm is in the river bottom along the Missouri River.
Jasper County. Located north of Kellogg, +/- 160 acres recently sold at public auction for $7,600 per acre. The farm consisted of +/- 147 tillable acres with a CSR2 of 53.2, and equaled $155 per CSR2 point on the tillable acres.
Benton County. Located northeast of Newhall, +/- 151 acres recently sold for $14,000 per acre. The farm consisted of +/- 145 tillable acres with a CSR2 of 89.8, and equaled $162 per CSR2 point on the tillable acres.
Fremont County. Located north of Shenandoah, +/- 156 acres recently sold at public auction for $10,800 per acre. The farm consisted of +/- 142 tillable acres with a CSR2 of 81.2, and equaled $146 per CSR2 point on the tillable acres.
Madison County. Located southwest of Earlham, +/- 54 acres recently sold at public auction for $12,000 per acre. The farm consisted of +/- 51 tillable acres with a CSR2 of 54.2, and equaled $234 per CSR2 point on the tillable acres. Note: About 12 acres of the tillable land has not recently been cropped.
Davis County. Located south of Bloomfield, +/- 118 acres recently sold at public auction for $13,000 per acre. The farm consisted of +/- 114 tillable acres with a CSR2 of 53.5, and equaled $251 per CSR2 point on the tillable acres.