The strong auction Jan. 31 in Jasper Co., Iowa, shows farm operators are still willing to pay up for quality farmland. This comes as there is ample evidence that land values have backed off somewhat in recent months. But if the farm being offered features top-quality soils, has a high percentage tillable acres to gross acres and is easy to farm. demand is still strong.
The auction featured 80 acres located southeast of Mitchellville, which is east of Altoona and the eastern edge of Des Moines. The farm is far enough from both Mitchellville and the Des Moines metro area to remove development potential from its values. Land in that area can have a tendency to roll, but this offering was flat and featured top-quality soils. According to Iowa's Corn Suitability Rating, with 100 considered ideal for corn production and rarely found, the farm rated 89.7. This puts it above some of the best soils in the state and well above the county average of 64.1.
The property featured 79.5 acres of tillable ground and an open lease for 2014.
Top-quality farmland in that area of the state averaged $11,803 an acre in 2013, according to the Iowa Land Value Survey conducted by Iowa State University. That same survey pegged the average value of farmland in Jasper County at $8,375 an acre.
The farm sold for $13,000 an acre, or $145 per CSR point. That's a strong price in the face of $4.25 corn.
For more information about LandOwner, please click here or call 800-772-0023.
See what farmland values are in your area. Plus, get information on cash rent rates on AgWeb's Farmland Value Guide.