Farmland prices in the United States have been on the rise in recent years, and that trend continued in the second quarter of 2023. According to a report by the Real Estate Research Council of the Farm Credit System, the average price of farmland in the United States was $3,100 per acre, up 12% from the same period in 2022.
The report also found that farmland prices varied significantly by state. In Indiana, the average price of farmland was $14,475 per acre, the highest in the country. Iowa was next at $11,259 per acre, followed by Kansas at $1,958 per acre.
The report attributed the increase in farmland prices to a number of factors, including strong crop prices, low interest rates, and high demand for farmland from investors.
Recent farmland sales :
• In Iowa, an auction of five parcels of land totaling almost 580 acres sold for about $6.53 million. Parcel per-acre prices ranged from $10,000 to $15,000. Average per-acre price across the whole was $11,259. The property held bases in corn and soybeans.
• In Indiana, a 99.48-acre farm sold in two tracts for $1.44 million, or an average of $14,475 per acre. The property was described as "productive farmland," level to gently rolling. The farm held bases in corn and soybeans.
• In Kansas, Ehrlich Farms, a mixed-use 1,200-acre property, sold at auction in five tracts. Interest in mineral rights sold separately. Total sales price was about $2.35 million. Average per-acre tract prices ranged from $1,700 to $2,100. Average, excluding any tract sold as a whole, was $1,958 per acre. The land included cropland, grass, CRP and wildlife habitat. Cropland bases were held in wheat and grain sorghum.
• In Kentucky, eight tracts of property totaling 1,064 acres sold at auction for $1.27 million, or about $1,194 per acre. The land was used for hunting and recreation, and included both lakes and some timber. Tracts were described as mostly wooded, with strip pit lakes and some road frontage.
• In Louisiana, a 511-acre plantation property sold for approximately $3 million. The farm was almost all tillable ground and partially irrigated. Average price per acre was $5,871.
• In Nebraska, an auction of six tracts totaling about 957 acres brought $8.61 million, or an average per-acre price of $8,997. Known as Norfolk Farms, the operation was irrigated across about 813 acres and was almost entirely FSA cropland. There was CRP income on some of the tracts.
• In Ohio, a 668-acre property, nearly all tillable and in large, square fields, sold for $9.88 million, or an average of $14,790 per acre. The farm included 300,000 bushels of grain storage.
• In Virginia, a 912-acre farm passed through private sale for an estimated $6 million. The historic farm included a home and two cottages. Tillable acres numbered about 229, with 302 acres described as pasture and 319 as wooded. Average per-acre price was $6,579.
Photo Credit: gettyimages-jimfeng
Categories: Iowa, General