Farmland sales in Iowa have been on a steady rise for the past two years, hitting back-to-back record highs in 2022. Reports suggest that farmland in Sioux County, Iowa, sold for a whopping $25,500 per acre in the first quarter of 2022.
According to Jim Rothermich, the Vice President of Iowa Appraisal, the accelerated highs in 2022 are not slowing down in the first quarter of 2023. Rothermich states that there are almost the same number of auctions in 2023 as there were in 2022 for farms selling at $20,000 per acre and higher.
Surprisingly, the volume of land sales has increased by 68% when comparing March 2022 to March 2023, with one of the larger-acre sales being 149.91 tillable acres sold for $24,000 an acre in Plymouth Country.
For landowners considering selling in the next 12 months, Jim Rothermich suggests educating oneself about market conditions. Although the market is not at its peak, it is close to historical highs. As cash reserves in the countryside disappear, landowners may decide to sell their farms sooner rather than later.
Additionally, the 2023 crop is predicted to be the most expensive in history, with a projected decrease in net farm income and projected corn ending stocks.
Photo Credit: istock-AlenaMozhjer
Categories: Iowa, Rural Lifestyle