Land Sale of the Week: $10,900/acre Southeast Iowa

October 17, 2014 12:19 AM
Land Sale of the Week: $10,900/acre Southeast Iowa

Mike Walsten

Quality still attracts demand is the message from a recent auction of top-quality farmland in southeast Iowa. The farm in question featured 157 acres of high-quality soils. It is located southwest of Grandview in Louisa Co., Iowa. It had 153 tillable acres and carried a Corn Suitability Rating 2 (CSR2) of 94.4 with maximum = 100. Obviously, outstanding. The soils rated a 93.0 under the old CSR system, too, which is well above the county average rating of 62.6. It was bare land, partially tiled with good access to Mississippi River terminals.

The auction, held Sept. 29 as December corn futures slumped near $3.20, saw the farm sell for $10,900 an acre. That's still a solid price but at the soft side of the going rate for top-quality in that area. The recent semiannual survey of farm real estate professionals pegged the average value of high-quality cropland in that area at $11,017 an acre as of Sept. 1. This auction was 1% off average.

That 1% slippage is not too bad considering December corn futures lost nearly 50 cents per bu. between Sept. 1 and Sept. 29 and attitudes were intensely bearish the day of the sale.

Roger Johnson, Farmers National Company, Cedar Falls, 319-277-0464 handled the auction.

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Spell Check

huntertown, IN
10/19/2014 05:34 PM

  on the land value above when you say a 1% slippage my math shows 10% less than average .

Owen Gohlke
Lakeville, MN
10/20/2014 02:14 PM

  Remember the almost $20k (or over) prices a year ago? Looks like about close to a 45% decline unles my math is bad. Let's start doing a more accurate job of reporting.

Pleasanton, NE
10/18/2014 07:36 AM

  "A fool and his money are soon parted" And there are those in the "crop comments" section that blame their bankers for "forcing" them to take out loans. With corn under $3, there is no land worth that much money, but these guys just voluntarily paid it. I sure hope they aren't among the whiners about crop prices.