Land Sale of the Week: $20,400/acre in Northwest Iowa

June 11, 2014 08:00 AM
 
Iowa Aerial

A farm sale in northwest Iowa is again making headlines as 80 acres of truly prime cropland passed under the gavel for $20,400 an acre June 9. At a time when farmland sales are soft and prospects for gains in farmland values seem slim due to lower commodity prices, the ability for a block of land to top $20,000 an acre is certainly headline making.

The tract of land involved consisted of 80 acres two miles east of Boyden in Sioux County. It offered 78.3 tillable acres and excellent soils. It carried a Corn Suitability Rating (CSR) of 76.2 (maximum 100), which is quite extraordinary in northwest Iowa. The county CSR average is 64.8, so the soils are some 18% better than average. Iowa is switching to a new CSR rating system called CSR2, which updates the CSR rating system developed in the early 1970s. That system, too, maxes out at 100. This farm's soils offered a CSR2 of 99.5!

The Boyden area of Sioux County has been a hotbed of high farmland prices due to deeply entrenched, multi-generational, well-financed livestock and grain farm family operations in that area. In addition, ethanol demand has added additional compeition in the region.

Farmers National Company of Omaha, Neb., handled the auction.

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See what farmland values are in your area. Plus, get information on cash rent rates on AgWeb's Farmland Value Guide.

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Ken
Worthington, MN
3/18/2015 09:37 AM
 

  Re: Sioux Co. land sale,it took 2 bidders to get to the 20,400,they wanted it,they had the money and are apparently not concerned about the return on investment,often times it's a once in a lifetime chance to purchase a parcel close to home base,for next generation. As far as finance the bnk. would go with 25% if buyer had the rest,so it could go down about 15,000 per A. before banker has an issue,if its pd. for it really won't matter what its worth. As far as no bids at an auction,unless there is a minimum it don't happen,the true worth of anything is determined by the buyer not the seller if its up on auction w/no reserve,if you want the price you think its worth sell it private treaty. I would rather own land than $ in investments at mercy of the Dow etc.Mark Twain, said buy real estate they ain't making any more,the advice still holds today.

 
 
Owen
lakeville, MN
3/12/2015 05:53 PM
 

  Why do I care about the moron who paid the most, how about discussing the auctions that are "no sale" due to lack of bids or bids that are substandard to what the sellers think it is worth. That is the real value of information that could be provided.

 
 
Anonymous
7/3/2014 09:57 AM
 

  Makes no economic sense -- buyer must be out of his mind. Must be an all cash deal I'm assuming because no sane bank would ever participate or be associated with this. Break even commodity prices into the distant future, so eventually guys like this will just run out of money but I'm not sure they got the memo.

 
 

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