Iowa cropland sells for high dollar

[billanole]

Sioux County, for example

Iowa land sells for nearly $30,000 per acre

This transaction and others caught the attention of farmland analyst Dave Price at the beginning of this year.

www.agriculture.com

Date: Feb. 27, 2024

Sale price: $29,600

Corn Suitability Rating Index (CSR2): 99.7 and 99.1

Selling via the buyer’s choice auction method, 117.41 acres in two separate tracts were sold near Orange City, Iowa. Tract 1 consisted of 40 acres, with 39.50 tillable acres. Tract 2 consisted of 77.41 acres, with 76.44 tillable acres. Both tracts sold for $29,600 per acre for a total price of about $3.5 million. That came out to $301 per point for Tract 1, and $302 per point for Tract 2.

Both tracts had easements with Summit Carbon Solutions, a carbon pipeline company.

 

[ihhawk]

Absolute craziness. Corn and soybean prices are at or below the break even levels.

 

[Hawki97]

I’ve had insane offers on that side of the state come in for some land I own. People have done lost their minds.

 

[Formerly Rockymtnole]

I’ve had insane offers on that side of the state come in for some land I own. People have done lost their minds.

Who are the potential buyers? Individuals? Corporations? Chinese?

 

[ihhawk]

Who are the potential buyers? Individuals? Corporations? Chinese?

In SE Iowa it has been all farmers buying the land. The 65 year old farmer that has his son working with him and they are wanting to add extra land. They are using a ton of old money to put down to be able to finance the rest. It will take an entire generation to have it financially make sense.

 

[Derekd3408]

Absolute craziness. Corn and soybean prices are at or below the break even levels.

They need the manure rights. Land prices in Sioux County have been wild for years because of that reason. Ground was selling for 20k an acre 10 yrs ago.

 

[Hawki97]

Who are the potential buyers? Individuals? Corporations? Chinese?

Mostly individuals.

 

[seminole97]

In SE Iowa it has been all farmers buying the land. The 65 year old farmer that has his son working with him and they are wanting to add extra land. They are using a ton of old money to put down to be able to finance the rest. It will take an entire generation to have it financially make sense.

Inflation really changes those kinds of calculations.

 

[Formerly Rockymtnole]

They need the manure rights. Land prices in Sioux County have been wild for years because of that reason. Ground was selling for 20k an acre 10 yrs ago.

What is this?

 

[Derekd3408]

What is this?

In Sioux County they have lots of cattle lots and hog confinements. That shit has to go somewhere. So they buy up land to spread on, or lease to someone to spread on. It's impossible to make any money simply crop farming 26k an acre land.

 

[seminole97]

In Sioux County they have lots of cattle lots and hog confinements. That shit has to go somewhere. So they buy up land to spread on, or lease to someone to spread on. It's impossible to make any money simply crop farming 26k an acre land.

This post makes it sound like Iowa is shit toast.

 

[Hawki97]

This post makes it sound like Iowa is shit toast.

Hey! We have agreement! Well done.

Want to talk about it?

 

[MitchLL]

So...it's not the Chinese that are driving up land prices???

Someone tell our Governor because that's who she's been blaming!

 

[Bank of Hawk]

This post makes it sound like Iowa is shit toast.

If one grain farms (beans and corn).. and does nothing else, that is fine, but corn price goes up and goes down and it is down right now.

So if one also feeds cattle, they can dip into their own corn supply when the corn prices are low.. when corn prices go up, they can sell more to market. Helps level it out.

Hell right now, the cattle farmers are raking it in big time.

 

[Hock-I]

Warms your heart that John Mellencamp, Wille Nelson, and Neil Young are still putting on annual concerts to help farmers in FarmAid.

 

[ihhawk]

Warms your heart that John Mellencamp, Wille Nelson, and Neil Young are still putting on annual concerts to help farmers in FarmAid.

This year will be ugly for a lot of farmers

 

[hawkeyeandy]

In SE Iowa it has been all farmers buying the land. The 65 year old farmer that has his son working with him and they are wanting to add extra land. They are using a ton of old money to put down to be able to finance the rest. It will take an entire generation to have it financially make sense.

I'm going to have some land to sell in SE Iowa soon. About 200 acres, of which 75 tillable and currently being farmed, the rest wooded and filled with big deer. Any HORT advice on the best way to go about selling? Agent, auction, for sale by owner, word-of-mouth?

 

[Hock-I]

This year will be ugly for a lot of farmers

I agree - but not “go out of business” ugly. My family has already locked in some small profit on early sales for the 2024 season. But the money that was made the previous two years? Yowza!!!

 

[ihhawk]

I'm going to have some land to sell in SE Iowa soon. About 200 acres, of which 75 tillable and currently being farmed, the rest wooded and filled with big deer. Any HORT advice on the best way to go about selling? Agent, auction, for sale by owner, word-of-mouth?

Where at? I would be interested in the timber area

 

[millah_22]

This post makes it sound like Iowa is shit toast.

pretty much.

 

[Hawki97]

I'm going to have some land to sell in SE Iowa soon. About 200 acres, of which 75 tillable and currently being farmed, the rest wooded and filled with big deer. Any HORT advice on the best way to go about selling? Agent, auction, for sale by owner, word-of-mouth?

Are you currently leading the land? Likely long term arrangement? What county?

 

[hawkeyeandy]

Are you currently leading the land? Likely long term arrangement? What county?

Cropland leased year-to-year. Henry.

 

[Whiskeydeltadeltatango]

In SE Iowa it has been all farmers buying the land. The 65 year old farmer that has his son working with him and they are wanting to add extra land. They are using a ton of old money to put down to be able to finance the rest. It will take an entire generation to have it financially make sense.

The back end of this is what is crazy to me. At these prices it's terrible ROI but "you can't make any more of it" and they have the scale to atleast break even.

 

[ihhawk]

Cropland leased year-to-year. Henry.

My place is in Henry by Winfield. Are you able to private message? I can’t start one. I want to talk about it. I’m interested in the timber ground. My family member might want the farm ground

 

[hawkeyeandy]

My place is in Henry by Winfield. Are you able to private message? I can’t start one. I want to talk about it. I’m interested in the timber ground. My family member might want the farm ground

Sorry, I don't know how private message or direct message works. It's family land and my brother is in charge of selling it, so it all has to go through him. He hasn't figured out how to go about it though. It's in Baltimore Twp. When he decides, I'll let you know somehow. We've had interest from neighbors and such, but nobody has made an offer.

 

[ihhawk]

Sorry, I don't know how private message or direct message works. It's family land and my brother is in charge of selling it, so it all has to go through him. He hasn't figured out how to go about it though. It's in Baltimore Twp. When he decides, I'll let you know somehow. We've had interest from neighbors and such, but nobody has made an offer.

Do you know how many timber acres? See if he would split that out

 

[hawkeyeandy]

Do you know how many timber acres? See if he would split that out

I don't know for sure. I would estimate 125 because most of what is not cropland is rolling timber. My brother isn't keen on subdividing. I suggested that to him, but that's more than he wants to do. He might change his mind, but he's not there yet.

 

[Jimmy McGill]

Keep subsidizing them.....

 

[SB_SB]

In SE Iowa it has been all farmers buying the land. The 65 year old farmer that has his son working with him and they are wanting to add extra land. They are using a ton of old money to put down to be able to finance the rest. It will take an entire generation to have it financially make sense.

Those damn boomers, now they're buying up all the land. Just wait until they get hit with the new inheritance tax that's going to be coming along. Their kids are going to have to sell the land to pay the tax. Jokes on them.

 

[ihhawk]

I don't know for sure. I would estimate 125 because most of what is not cropland is rolling timber. My brother isn't keen on subdividing. I suggested that to him, but that's more than he wants to do. He might change his mind, but he's not there yet.

The best thing to do is contact White Tail Properties to list it. They have sold a bunch of similar properties. They market for the deer Hunters. Hersh with them is great.

 

[hawkeyeandy]

The best thing to do is contact White Tail Properties to list it. They have sold a bunch of similar properties. They market for the deer Hunters. Hersh with them is great.

Thanks for the tip. It's probably a better property for hunting than it is for farming. Most of the interest we've gotten so far is from hunters.

 

[ihhawk]

Thanks for the tip. It's probably a better property for hunting than it is for farming. Most of the interest we've gotten so far is from hunters.

They have a client base specifically for hunters. You could get around 10k an acre for it. If you broke it down into smaller 20 acre parcels you might even get more. Lots of hunters would spend 200k for hunting ground. Buying 200 acres at 2 million is a different story

 

[hawkeyeandy]

They have a client base specifically for hunters. You could get around 10k an acre for it. If you broke it down into smaller 20 acre parcels you might even get more. Lots of hunters would spend 200k for hunting ground. Buying 200 acres at 2 million is a different story

I'll let bro know. I imagine splitting up into parcels would require surveys, subdividing, paperwork, cost, etc. That's the kind of stuff he's very reluctant to get involved in.

 

[Obviously Oblivious]

Those damn boomers, now they're buying up all the land. Just wait until they get hit with the new inheritance tax that's going to be coming along. Their kids are going to have to sell the land to pay the tax. Jokes on them.

Seems unlikely, I've heard no other credible new proposals for inheritance/estate tax changes from Biden except for:

For farmland and certain real estate used in a closely held family business current law permits that property to be valued using special rules that will reduce the estate tax value. The purpose of this is to reduce the need to liquidate family farms or real estate used in a family business to pay estate tax. But under current law this benefit is capped at about $1.4 million of property. The new law, and this is one of the few favorable changes proposed in President Biden’s budget, will increase this amount to $14 million. That is $28 million for a married couple. There are strict and detailed requirements that have to be met to qualify for this opportunity. For example, it must actually be a working farm. This benefit may be so significant, especially if the estate tax exemption is cut in half in 2026 to about $7 million; anyone owning property that might qualify may focus on planning to qualify. Further, it may even become worthwhile for others to invest in such assets if they can realistically qualify for this enhanced tax break. Consider that the average value of a family farm might only be about $2.5 million.

So Biden's current tax proposal actually benefits family farm estates. Besides, with the average family farm estate value at $2.5 M, the vast majority of family farms would be exempt from paying any federal estate or inheritance taxes anyway. Iowa's inheritance/estate tax is slated to end in 2025 or 2026 currently.

 

[ihhawk]

I'll let bro know. I imagine splitting up into parcels would require surveys, subdividing, paperwork, cost, etc. That's the kind of stuff he's very reluctant to get involved in.

Surveys will have to be done no matter what. They aren’t that expensive either. A couple grand. That could easily make you a shit ton more money though. White tail will talk you through it

 

[MitchLL]

Back to the thread topic...it's situations like this that make non farmers have ZERO sympathy for farmers.
Farming profits have been cyclical for generations. Neighbors are continually competing with each other when farmland cones up for sale. Long term...land prices always rise!!!

Oh, and as previously mentioned...SUBSIDIES!

 

[SB_SB]

Seems unlikely, I've heard no other credible new proposals for inheritance/estate tax changes from Biden except for:

For farmland and certain real estate used in a closely held family business current law permits that property to be valued using special rules that will reduce the estate tax value. The purpose of this is to reduce the need to liquidate family farms or real estate used in a family business to pay estate tax. But under current law this benefit is capped at about $1.4 million of property. The new law, and this is one of the few favorable changes proposed in President Biden’s budget, will increase this amount to $14 million. That is $28 million for a married couple. There are strict and detailed requirements that have to be met to qualify for this opportunity. For example, it must actually be a working farm. This benefit may be so significant, especially if the estate tax exemption is cut in half in 2026 to about $7 million; anyone owning property that might qualify may focus on planning to qualify. Further, it may even become worthwhile for others to invest in such assets if they can realistically qualify for this enhanced tax break. Consider that the average value of a family farm might only be about $2.5 million.

So Biden's current tax proposal actually benefits family farm estates. Besides, with the average family farm estate value at $2.5 M, the vast majority of family farms would be exempt from paying any federal estate or inheritance taxes anyway. Iowa's inheritance/estate tax is slated to end in 2025 or 2026 currently.

Silly you. Of course Biden isn't going to increase the inheritance tax because he's part of the older boomer generation. You just wait, the time is coming when the Gen Whatever get in charge, things are going to change and those rich farmers are going to start paying their way. Finally those boomers will have to pay so the younger people are able to get some of that money.

 

[OrlandNole]

I've got some Tennessee crapland I'll sell you. The Corn Suitability Rating Index is off the charts.

 

[IIowaFarmBoy]

Sioux County, for example

Iowa land sells for nearly $30,000 per acre

This transaction and others caught the attention of farmland analyst Dave Price at the beginning of this year.

www.agriculture.com

Date: Feb. 27, 2024

Sale price: $29,600

Corn Suitability Rating Index (CSR2): 99.7 and 99.1

Selling via the buyer’s choice auction method, 117.41 acres in two separate tracts were sold near Orange City, Iowa. Tract 1 consisted of 40 acres, with 39.50 tillable acres. Tract 2 consisted of 77.41 acres, with 76.44 tillable acres. Both tracts sold for $29,600 per acre for a total price of about $3.5 million. That came out to $301 per point for Tract 1, and $302 per point for Tract 2.

Both tracts had easements with Summit Carbon Solutions, a carbon pipeline company.

Absolute craziness. Corn and soybean prices are at or below the break even levels.

Farmers have a crazy amount of cash.

It would take minimum 750 rent per acre to be at the low end of historical land to cash rent levels.

 

[ihhawk]

Farmers have a crazy amount of cash.

It would take minimum 750 rent per acre to be at the low end of historical land to cash rent levels.

Farmers that own their ground have cash.

Renters dont