Land Auctions picked up the last month of quarter 3 with a good amount of land coming up for auction. September tested with market with more land being auctioned than any month in 2017. The quarter 3 data indicates a very stable market. The data suggests that quarter 3 is down slightly from quarter 2 by -0.4% on 85% tillable farms. The data suggests the market has gotten stronger throughout the year and even with more land being auctioned, the market appears to be very strong.
Harvest is just getting started. I am hearing yields are better than expected however, farmers typically harvest the best fields first. As harvest progresses, it will be interesting to see yields continue to exceed expectations.
Look for an Increase in Land Auctions
According to the realtors I visit with, November and up to mid-December will be very active for land auctions. So far, more inventory of land for sale has not affected land prices. If yields continue to exceed expectations, I expect this trend to continue. Why? Higher than expected yields brings optimism. I am of the opinion, if you are thinking of selling farmland in the near term, the demand to buy is currently out stripping the supply for sale and is creating a “sellers’ market” and sellers are being rewarded for bringing their farms to the market. In my opinion, the sooner the better, if you’re thinking of selling.
Get the Full Report
Iowa's average land auction value for Q3 2017 is $8,038 per acre, with the average auction price for 85% tillable land being $8,876 per acre. Get the full report to learn the following information:
- Quarter-over-quarter Auction Prices
- Auction Prices by Crop Reporting District
- Both Land and Highly Tillable Land Auction Results
Download the archived Iowa Farmland Values Report - Q3: 2017 here.
Written by Jim Rothermich, MAI "the Land Talker"
With nearly three decades of experience in the farmland real estate industry and his MAI designation, Jim is a respected expert in the appraisal industry. Check out his blog: "Land Talk Weekly" or follow him on Twitter: @theLandTalker to keep current on Iowa farmland information.