Farmland Prices definitely off the highs

[Trapshooter1]

71 acres sold on auction today. Square all tillable but 1 water way.
88.3 CSR2
Tiled every 70 feet
16,500/acre. I truly believe farm would have brought 2,000/acre more 12 months ago.
Is a very good farm.
NEIA

 

[Sligh1]

Not surprised. It likely will get a little softer yet, IMO. Does that mean a “50% drop”? Of course not. I would not be surprised to see it slide 5-10% over the next year or 2 though.

 

[crietveld]

My 2 cents from what I see in my neighborhood. There is alot of land potentially coming to market in 5-10 years. Elderly owners with kids that don’t farm. The local farmers can only buy so much of that at current prices.


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[newfarmer]

I know a guy who had an offer 8 weeks ago but the family was greedy and wanted more. 13,500 was the offer. They went to auction (sealed bids) and are coming in around 9000 now. They are kicking themselves because 4 months ago they saw ground across the state go for 19,000

 

[8bitnes]

I know a guy who had an offer 8 weeks ago but the family was greedy and wanted more. 13,500 was the offer. They went to auction (sealed bids) and are coming in around 9000 now. They are kicking themselves because 4 months ago they saw ground across the state go for 19,000

They need to fire the realtor/auctioneer. Sealed bids is a recipe for lower prices

 

[78mac78]

Not surprised. It likely will get a little softer yet, IMO. Does that mean a “50% drop”? Of course not. I would not be surprised to see it slide 5-10% over the next year or 2 though.

Do you think that slide will happen mostly on the high end of the scale? I would say in my neck of the woods the low end will not see as significant of a slide.

 

[Ishi]

Land sold a week ago in the neighborhood and sold for a good chunk of change. Sold for 18,000 a acre

 

[jflournoy]

These sales results so often tend to be impacted by circumstances that are hyper-local. Sometimes they're a reflection of the broader market and sometimes they're not at all. I was at an auction in late Summer in central Iowa and some mid 80's csr2 farm ground was selling. It was certified organic farm ground, and didn't show very well. Not the "cleanest" looking because of no herbicide use. Ended up selling for about $2,000/acre less than lots of other similar ground in that county had been selling for. If it showed "prettier" would it have sold for more? Very likely.