The July 4 holiday is often an annual pivot point for the farmland market. Not only is Independence Day a common midyear meeting and relaxation time for families, but it also marks the point when the 90-day window opens before harvest.
As a result, many second-half and year-end decisions get batted around and directionally made coming out of the holiday breather. I believe this year will be no different — and possibly even more noticeable.
Why?
Early 2025 featured a lot of moving parts and uncertainty, so many early-in-the-year decisions were postponed until people had (or felt) more certainty. I do not believe that certainty exists yet, but it does seem people have become more comfortable making decisions within the uncertainty.
In terms of land market, I’ve mentioned in recent columns that the limited supply of land has helped to maintain Iowa farmland prices thus far in 2025. Overall demand for land also is down year over year, but supply has been down even more. Thus, we’ve seen farmland values firm up and move marginally higher in most areas since last fall.
Early-year strength in the 2025 grain markets supported land prices into spring. But since planting season, the grain markets have gone through a painful 90- to 120-day trend lower, based on good weather and increasingly high big-crop expectations, especially for corn.
The continued tariff uncertainties also still are weighing on the grain complex. So, while land sale supply has been down and has proven mostly land price-positive, it’s important to know that the weakened summer grain complex has not been supportive to farmland prices.
To be fair, things still can change. But I’m beginning to see 2025 set up as another one of those years where — similar to 2015 through 2019 — marginal profitability and an offsetting mix of plus and minus influences yield a sideways, choppy land market. In that environment, crop production volume and success become a significant influence.
Said differently, do you remember a few years back, when we talked a lot about whether we could “out-bushel” the commodity price weakness? This may be the coming scenario.
Emmet County. North of Gruver, +/- 152 acres recently sold at public auction for $11,050 per acre. The farm consisted of +/- 147 tillable acres with a Corn Suitability Rating index of 78.8, and equaled $145 per CSR2 point on the tillable acres.
Franklin County. South of Hampton, +/- 114 acres recently sold at public auction for $13,000 per acre. The farm consisted of +/- 112 tillable acres with a CSR2 of 86.4, and equaled $153 per CSR2 point on the tillable acres.
Clayton County. Northwest of Edgewood, +/- 58 acres recently sold for $14,200 per acre. The farm consisted of +/- 54 tillable acres with a CSR2 of 84.2, and equaled $181 per CSR2 point on the tillable acres.
Harrison County. Northeast of Modale, +/- 80 acres recently sold at public auction for $7,500 per acre. The farm consisted of +/- 79 tillable acres with a CSR2 of 60.4, and equaled $126 per CSR2 point on the tillable acres.
Jasper County. East of Prairie City, +/- 122 acres recently sold for $14,700 per acre. The farm consisted of +/- 120 tillable acres with a CSR2 of 86.8, and equaled $172 per CSR2 point on the tillable acres. Note: Roads divided this property into three parcels.
Cedar County. Northeast of West Branch, +/- 70 acres recently sold for $12,285 per acre. The farm consisted of +/- 62 tillable acres with a CSR2 of 76, and equaled $182 per CSR2 point on the tillable acres.
Mills County. West of Glenwood along Interstate 29, +/- 182 acres recently sold via sealed bid for $14,305 per acre. The farm consisted of +/- 178 tillable acres with an average CSR2 of 95, and equaled $154 per CSR2 point on the tillable acres. Note: Roads divided this property into two parcels.
Ringgold County. Southeast of Mt. Ayr, +/- 240 acres recently sold for $4,406 per acre. This farm features a CSR2 rating of 40.3 and is grazing pasture with multiple ponds, along with areas of timbered draws.
Jefferson County. Northeast of Fairfield, +/- 72 acres recently sold for $9,727 per acre. The farm consisted of +/- 67 tillable acres with a CSR2 of 66.7, and equaled $157 per CSR2 point on the tillable acres.