Iowa Farmland Prices Report Week 6 2018

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Iowa Farmland Report Week 6 of 2018

Average Price per CSR2 Point in Iowa

Welcome to our Iowa farmland report for week 6 of 2018.  Dollars per CSR2 point this week swings $12.39 higher than last weeks average ending at $96.13 per CSR2 point.  Good farmland sale prices this week and an abundance of good quality farms kept the average up.  The CSR2 rating of farms sold this week averaged 74.56 which was also above last weeks average of 71.4 which shows the premium in those higher quality farms.  The land sold this week was 84.02% tillable which was also up  slightly from last weeks report by 3.9%

farmland value and appraisals in iowaIowa Farmland Sales Volume

This weeks Iowa farmland report shows volume was lower than last week with only 1206.28 acres sold of which 1013.55 was tillable acres.  This was lower than last weeks tillable acres sold of 1225 out of  1530 acres.  Farmland sales volume remains very low right now and contributes to higher values in farmland.  We almost have 2 farmland markets running side by side right now.  You have the traditional market where estate and retirement farms are being sold and a more quiet out of the public eye leaseback market which tends to happen most this time of year.  Leasebacks are farms for sale by farmers typically experiencing cash flow difficulties and even potentially financing issues.  Perhaps the banker has told them to liquidate a particular asset to get their cash flows in line or they’ve just felt the financial pressure themselves and would like to create some breathing room.  There are farms available in this leaseback market and a fair number this year however its much more difficult for buyer and seller to connect in this way because of the “secret” nature of the situations where the seller does not want any attention and there are always more strings attached to the sale.  Ideally the seller will require that they remain the tenant for a period of time, often require a first right of refusal or even a definite sale back timeframe and the farms tend to be priced more in the premium range despite the strings attached.  Another downside is you could be taking on a tenant that is experiencing financial difficulties but a positive is you are taking on a tenant that has a sense of pride in the farm you’ll own, has farmed it in the past and very likely to take good care of the farm.  If you are interested in looking at available leaseback farms lets us know.  They are rarely ever advertised and requires phone calls to find them.

Year to Date Average Farmland Prices in Iowa for 2018

Highest Selling Farm This week

Iowa Farmland Report A sale of $148.51 a CSR2 point tops the charts this week in Tama County at $13,500 per acre on 40.36 acres of farmland.  This was a 100% tillable farm and very good quality at 90.9 CSR2.  There is never any doubt these smaller acreage farms with high CSR2 ratings are going to do extremely well in the auction environment.  We call these farms “An Auctioneers Dream” when we talk about them because we know the intense competition we can create for these farms when exposed properly.

Farmland Price Summary for Iowa

The market continues to produce very good farmland prices across Iowa on low volume and low interest rates.  We see people leaving auctions disappointed they could not buy the farm and often times frustrated but as one runner up bidder told me recently “I had to stop somewhere but I didn’t want to”  Good quality farms will continue to produce good results for sellers I am confident of that for a long time to come.  Medium quality farms tend to be the more hit and miss category thats a little harder to predict from sale to sale and can really be affected by high sales volume in the area they are located.  We’ve seen instances where 4 or 5 farms in 50-60 CSR2 range have sold in close proximity in a shorter time frame and the saturation of sales probably affected the price outcome. Be sure to check back next week for the next edition of the Iowa farmland report and we’ll let you know how this week end.  We’ll be selling in Palo Alto County this week and back in Sioux County next week.  Please be sure to check our auction calendar, we are always learning of new buying opportunities and listing new farms.

Iowa Farmland Prices February 2018

Week 6 Iowa Farmland Report
County Total Acres Till Acres Price Per Till CSR2 $ per Till CSR2 Total Price
Ringgold 156 0 No Sale 49.8 0 0
Floyd 78 76.6 $8550 90.5 $94.48 $654930.00
Floyd 157 152.4 $6375.00 69.5 $91.73 $971550.00
Floyd 160 149.1 $6050.00 75 $80.67 $902055.00
Floyd 100 97.6 $7550.00 87.6 $86.19 $736880.00
Hamilton 146.33 138.8 $10200.00 82 $124.39 $1415760.00
Worth 70 66.6 $8600.00 85.5 $100.58 $572760.00
Worth 36 30,77 $6600.00 64.5 $102.33 $203082.00
Monona 35.96 36.69 $8600.00 82.9 $103.74 $306934.00
Monona 74.77 74.77 $6700.00 65 $103.08 $500959.00
Monona 78.86 78.66 $6500.00 61.9 $105.01 $511290.00
Monona 73 72.2 $7000.00 64.2 $109.03 $505400.00
Tama 40.36 40.36 $13,500.00 90.9 148.51 $544860.00
Iowa Average $7401.92 74.56 96.13
TOTALS 1206.28 1013.55 7,826,460

Featured Farmland Auction For Sale in Iowa

Farmland Auction Join us on Feb 14th at Graettinger Iowa for this the sale of this farmland owned by the Willis Voxland Estate.  These 2 farms total 118 acres and will be sold in 2 individual tracts. Both are good quality farms with high CSR2 ratings.  You can learn more on this farm and other farm auctions and listings at 

2014 Farmland Prices a Surprise to Some

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News of a farmland auction in Washington County Iowa has made its rounds through the circuit this week.  There have in fact been quite a few farmland auctions over the past month that have brought prices that were higher than some expected them to be.  We have written on this on the blog as well.

Here are a few examples of recent farmland sales across Iowa

9/9 Louisa County 73 Acres CSR2 68.4 $7000/a

9/10 Dallas County 85 Acres CSR2 85.9 $10,900

9/5 Kossuth County 308 Acres CSR2 77.7 $8,800

8/29 Jones County 168 Acres CSR2 86.4 $13,000

8/29 Osceola County 104 Acres CSR2 68.9 $7,350

8/29 Osceola County 84 Acres CSR2 95 $10,700

8/20 Cedar County 160 Acres CSR2 90 $13,500

8/9 Adair County 134 Acres CSR2 65.3 $4,400

8/6 Madison County 80 Acres CSR2 37 $3300

8/12 Decatur County 72 Acres CSR UNK $2850

8/4 O’Brien County 160 Acres CSR2 92.7 $10.200

8/1 Marion County 71.1 Acres CSR2 80.3 $7200

Thinking of selling a farm?  Let us help you understand your asset and the value of it.  We offer real estate listings, hyper listings, live and Internet auctions.  We specialize in marketing and selling farm assets at Call today (855)376-3478

7 Things: How To Choose An Auctioneer To Sell Your Farm

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How To Choose An Auctioneer To Sell Your Farm

For weeks this post has rolled around in my head, several times I committed points to paper only to scratch one and add another.  I wanted to be sure I covered the most important points.  It was only supposed to be 5, then it was 10 but I narrowed it to only the 7 very most important topics.  In the end hopefully you’ll better know the questions to as of the auctioneers you are considering to ensure you have picked the right company for the job.

1.  Not All Auctioneers Are Equal: When it comes to methods, we are all different, this is really what sets auctioneers apart.  When I say methods I am talking about how the actual sale is conducted.  I’ve had sellers ask me “why would I pay you a commission when I could just do it myself, I don’t have to be able to talk fast to get up in front of a crowd to ask for bids”  Lets be honest, if it was that simple, wouldn’t everybody do it?  I’ve in fact seen people try it thinking it was easy, and they got an hard lesson in the value of a professional auctioneer.  People tend to forget, people do not come to auction to pay top dollar.  Every buyer in the crowd is there to buy it as cheap as possible.  Until you have sold thousands of acres of farmland like we have you’ll have no idea how to act, what to say, when to say it, and all of the other things that must be done.  An auctioneers methods are his/her “secret sauce”  it is sort of like the Colonel’s 11 secret herbs and spices.  Its learned over time with a lot of experience, hundreds and thousands of hours of practice.

2. Not All Brokerages Employ An Auctioneer And Not All Auctioneers Are Licensed to Sell Real Estate: Despite the fact that may companies have added the word “Auction” to their name in recent years, they have no auctioneer on staff.  Their websites will even boast their prowess in the auction world.  Realize this is about market share, picking up an extra commission here and there.  Some may have a very very part time auctioneer they will pay a small fee to call your sale, but that is rare.

Another important point to consider, not all auctioneers are licensed to sell real estate.  Some auctioneers without a real estate license sell farms but the restrictions on such a sale make it difficult in my opinion to provide effective service to a client.  In fact, it became necessary for the State of Iowa to clarify the rules in 2012 and boost the penalties.  You can read about that here.  Is it important to you that the auctioneer selling your farmland real estate be licensed to sell real estate and have the full ability to market, show and close your farmland transaction?

3.  Not All Auctioneers Sell Farmland:  There are many auctioneers across Iowa, and most of them will take your listing if they can get it but if you are looking for an auctioneer that sells farmland and is good at selling farmland you’ll need to do some digging and question asking to find out.  I know many auctioneers that have never sold a farm in their entire career, but they would love for your farm to be the first.  Is it important that the auctioneer you choose have experience in selling farmland?  Would you trust a surgeon doing his first surgery?  Would you hire a carpenter to build your home if you knew it was his first build?

Farmland Auctioneers in iowa4. Not All Auction Companies Have The Same Resources:  At DreamDirt we’ve built many resources over the years.  These resources include contacts all around the state, buyers from around the nation, marketing and advertising resources such as mailing lists, email lists, websites, subscriptions and even physical resources such as auction sound toppers, tents, tables, trailers, technology, signage, mailing and many more things.  At DreamDirt long ago we decided to be the best at what we do, we have invested heavily in the resources that help you be more successful, resources that help you sell fast, higher and with the least amount of stress.

5.  Farm Management Companies Are Good At Managing Farms:  I love my farm management friends, they are good at what they do, they manage farms that is their primary business.  Somewhere along some of them decided to sell farmland, why not?  They have a captive audience and it would make a nice secondary income right?  Maybe that’s a fit for you? Consider this though, when you want an auctioneer that will do the best for you and have no competing interests, an auctioneer who does farmland auctions as a primary activity with no secondary activity would you do better?

6.  Bigger ISN’T better, Bigger is “Cookie Cutter” Auctions:  I had a client that was considering our services tell me “we are looking at a bigger company, I just think they will be able to do a better job”  I was lucky to have that opportunity and I was glad they shared that perspective with me when they did.  In the end they hired us to conduct their sale and I’ll share why they made that decision.  Large auction companies lack flexibility in many ways medium and small companies don’t.  Large auction companies enjoy “big reputations” and all the luxuries that come along with that.  Their sales volume puts them in front of a lot of people, they get more opportunities to sell which just continues to snowball.  When you stop and think about it though, the majority of the time your sale is being handled by a person that won’t even be at your auction, probably have never attended many auctions.  Through the marketing and inquiry phase your asset is being handled by an office worker that is stamping out your auction exactly the same what the last one and the next one will be stamped out.  The exact same things are done for each one of them. Your auction does not always have trained eyes on it as many of the tasks are pushed off to others to oversee until auction day when the auctioneer will arrive.  This keeps their costs down, maximizes the company profit.  When auction day arrives you’ll be dealing with an auctioneer that might be getting a flat fee for calling the sale and no interest in doing a “great” job and if he is a commission auctioneer he probably going to sell 3 farms that week, will he be hungry enough to do a “great” job on your sale?    Do you want individual attention every step of the way?  Do you want your calls answered?  Do you want to ensure that trained eyes are directing the presentation of your assets every step of the way?  I bet you do, but if a cookie cutter auction is fine with you then I won’t say it will be a disaster, but it won’t be as good as it could have been!

7 Full Service Isn’t Always Full Service If You Know What I Mean:  One of the most misleading statements I’ve seen in auction advertising is this “We are a full service Auction Company”  Just what does full service mean?  I suppose to everybody it could be something different.  To some full service auctioneering is providing the auctioneer, clerk and cashiers for the sale.  To some it is providing real estate brokerage services and auctioneering services is full service.  To us, its all of the above plus being flexible enough to pick up every possible loose end.  I’ll give you a few examples.  Recently a client from another state was flying to Iowa to sell his family farm of 70 years.  When he arrived at the airport in Des Moines, we were there to give him a ride to the farm 100 miles away.  The next day when the old farm pickup would not start we were there to give him a ride to get a new battery.  In fact, our presentation crew completely cleaned the entire house, washed the windows and made every asset shine.  For another client that lived out of state our crew met them onsite and then spent 4 days pulling every item from 2 barns, power washing them and photographing them for the sale.  Its not uncommon when we sell a farm to have other assets that are sold at the same time, that might be machinery, or household contents, perhaps a home and outbuildings.  The largest auction companies in Iowa will only sell your farmland, they realize that’s the asset with the most value.  We won’t leave you hanging, we are full service and will ensure every lose end is tied for you when we finish.  To us, that’s what a full service auction company does… literally everything that has to be done.  We pride ourselves on making selling easy.

Selling farmland in IowaChoosing an auctioneer is something most people will very rarely every do in life.  Its usually a task nobody wants to be faced with.  If you do not live your entire life everyday inside the auction business it will be very hard for you to tell the difference from one auctioneer to the other.  We ensure that every seller gets an auctioneer that fits them and is there with them literally every step of the way.  Our auctioneers are responsible for every facet of their clients sale and responsible for the constant oversight of it, and they have the tools to

Every client we have worked with has different parameters that are important to them, we have built off of their requests and built an auction company with a primary responsibility of being auctioneers.  We specialize in farmland and farm assets.

If you want to visit with somebody about selling farmland in Iowa, or a farm estate please call us today at (855)376-3478

Auctioneers in Iowa

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We are Auctioneers in Iowa that handle farmland, estates, machinerty and crop and hunting lease auctions.  We specialize in farm type assets across all 99 counties in Iowa.  We provide a great deal of information on current farmland prices in Iowa on our site to help you keep track of land markets and make the decision to sell when its right for you.

Our Auctioneers in Iowa and support personnel are located in different parts of the state to best serve our clients, to understand local markets and provide a timely response.

Auctioneers in iowa

We are thoroughly experienced in farmland sales, machinery sales, estate liquidation, cropland leases.  You can click Reviews above to see what other sellers have had to say about working with us.  Auctions are a fair, fast and frequently used way to dispose of assets here in Iowa. Auctions are very well accepted in this state and are especially effective at

  • Creating time specific date certain sales, no market lag time

  • Accelerated saturation marketing ensures maximum exposure quickly

  • Reduced carrying costs (taxes, insurance, mortgage payments end sooner)

  • Quickly turning assets to cash (usually 60 days)

  • Reduced marking time and increased effectiveness of marketing

  • Transaparent dealings

  • Provides open, fair, and non-discriminatory bidding environment

  • Creates competition for your assets

  • No negotiations (removes seller from difficult positions)

  • Minimizes defaults because substantial bid deposits are required

  • Provides immediate confirmation of the sale

Auctions provide great benefits to sellers.  I always explain it this way.  With a listing you are asking the buyer to make you an offer, but with an auction you are offering the asset to the buyer.  Its easy to see who controls each different method.  Sellers fully control all terms and conditions of the auction so bidders all operate under the same conditions.

If you are in the market for the services of Auctioneers in Iowa we would enjoy the opportunity to visit with you.  You can click the Contact link above or the “How Much is My Farm Worth” graphic to the right.  You are always free to call us at (712)592-8965 to discuss your assets and potential sale.