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S.E. Iowa Land prices on the rise!

Diggdug

Diggdug

Member
So I have been watching hunting land prices in SE Iowa very carefully since 2012 and the prices are sure going up! In 2012 there were several properties for 2k to $2500 an acre, now it seems like everyone is asking $3500 to $4500 and up. At this rate I will never be able to afford more land.

My plan is to Retire and move to SE Iowa in 10 to 15 years but it looks like at this rate I might be hunting public....
 
If you don't find a way to buy now you will say in 5 years I wish I purchased land 5 years ago. Keep in mind rec land and ag land are different animals. Some want to base rec prices on the recent decline in ag land per acre. Don't do it! Recreation in all forms is valuable to folks. Buy your little piece of heaven as soon as you can, enjoy, and watch your investment increase in value.
 
In Monroe county in 2011 land could easily be bought for 1500-800 per acre on WP. Once you get to 4,000 the cost benefit of being a NR landowner decreases given the current system. Everyone thinks giants exist everywhere in Iowa and that's just not the case. It's all about the right neighborhood and without that you are up a creek without a paddle.
 
I hear plenty of people talk about how the prices are going to go back down. But a good percentage of the high quality farms and neighborhoods have been bought and sold enough times that the price is never going to come back down. Crp and pollinator rates and renewals are very attractive too so you can't figure on tillable going down bringing down the land values. And anything at $4000 an acre you are probably getting a bunch of tillable or a house or cabin included. And that is still high. Check out the 660 on WP in Monroe it is not near that high .
 
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SE Iowa has actually factually came down. Look at or google: rli, land, report, Iowa. Or something like that. Isu has same report. Whole state came down except sc Iowa. I think 4 reports in a row now. (Done every 6 months). Land prices are gonna be interesting (rec and tillable are kinda related but essentially 2 different animals.). If grain stays low for 1-2 more years- great time to buy some tillable. If economy tanks some- great time to buy some Rec or mixed. Hoping for adjustment to be honest. We seen some already.
 
I follow land prices and values pretty closely in SE Iowa, and have been doing so now for about 20 years. While I am not a professional in the market, I do have quite a bit of information built up over the years. Given that, here are my thoughts...

The old real estate maxim...location, location, location is still very applicable. In particular, the neighbors to any given property are super important as to whether or not that property can realize its' potential and in some cases nowadays, prospective buyers are actively researching the neighbors as much as they are the property they are looking at. (This is very wise IMO.)

Sort of along those lines AND also because some property owners have worked their tails off over many years now to "trick out" their land to be as well prepared to benefit wildlife as possible...I now see another "segment".

In my mind, there are four primary segments now:

1. Ag ground - this is primarily tillable, with possibly some hunting, but true farmers are the likely buyers here. This ground spiked 2-3 years ago and has now softened, and if grain prices continue to be lower it will drop some more I think.

2. Recreational ground - this is predominantly timber/brush, often with some pasture and/or tillable on it too. This is the ground that so many of us hunters have bought in the last 15-20 years, often very cheaply as the return on the land for a farmer was very poor. 20 years ago = $275-$350/acre. 15 years ago = $750-$1000/acre. 10 year ago = $1200-$1800/acre. Now = commonly listed for $2200-$3000/acre, although sometimes selling below that in some situations.

3. Mixed - a combination of ag and rec.

4. Premium rec ground - this is my "new" segment. :) I know of one farm that sold recently that brought nearly $4000/acre. (Yes, there was a small 1 BR house on the land too.) But what drove the price on this place was that the seller has worked like a mad man for many years now to enhance the value of this property from a wildlife perspective and it sure appears that the buyer valued all of this excellent habitat work...because there is no way in the world he is going to make that land pay for itself by cropping or pasturing it.

Quick summary...I do not see the rec ground prices dropping much, if at all, barring a widespread economic problem. Right now, it is sort of a seller's market for good rec ground. Realtors are having a harder time getting listings in the good areas.
 
This has been interesting to watch. For the most part land has gone down for two years in a row. That's an aggregate of all ground (rec ground hasn't changed much at all). Year over year from 2015 to 2016 it is expected to go down for a 3rd year in a row.

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My buddy bought a nice farm for $1900/acre. I have heard of two other great farms going for $1900/acre in SE Iowa. Acres varied from 150-250acres.
 
Daver is spot on. Same with 83. Now- it's "forecasted" (which is often wrong) corn will go down for 1-2 years and stay around the $3 mark. One by one some farmers won't be able to hold on and rent prices will drop and have dropped. Guarantee u tillable continues to fall as 1-2 years go by. Unless we have droughts across nation that push it up to $5-6 or something.
Then- I'd link rec ground or mixed directly to economy or close. Dow for example is at 17-18k. Companies being sold for big bucks, guys cashing in- rec does well. Dow crashes to 10k- watch out. Interest rates go to 5, 6, 7 - ouch.

I personally think the adjustment will be slow paced like u have seen in the reports.... 5-6% decrease every 6 months and I bet it continues for 1-2 years unless something drastic happens. I actually love seeing the fluctuations and decrease in prices. And yes, it's better for everyone that it gradually corrects vs collapsing. Bought time we started having some well deserved corrections. I farm but the conservationist in me was sickened with what happened to crp and 100 year old trees on rough dirt when corn spiked at $7. This downturn is very much needed.
 
I'm in full on mid life crisis mode, so I'm actively looking at ground at the moment. I'd love to find a small piece 20-40 acres where I could build a house and be done with it, but in Jones county those are tough to find and when you do find them they want 9k for bare ground. I'm tempted to build on a smaller piece and buy a chunk in se Iowa as it seems like I can get way more bang for my buck. If I could get my wife to move it would sure make things easier.
 
This topic always get conversation, and rightfully so! Small pieces will definitely go higher than large chunks. Especially near metro areas. Alot of people buying and building further from the city, that's what I've seen lately.

All I can say for myself is that I hope when it comes time for my neighbors to sell, market is low so I get it right :) even though he knows how bad I want it and will likely play on it!

Though when I was those shows on discovery channel in Alaska and where ever. I kind of just want to jump ship and stake a claim up there
 
Daver said:
2. Recreational ground - this is predominantly timber/brush, often with some pasture and/or tillable on it too. This is the ground that so many of us hunters have bought in the last 15-20 years, often very cheaply as the return on the land for a farmer was very poor. 20 years ago = $275-$350/acre. 15 years ago = $750-$1000/acre. 10 year ago = $1200-$1800/acre. Now = commonly listed for $2200-$3000/acre, although sometimes selling below that in some situations.
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As Sligh mentioned, with corn at $5-$7 many "marginal" acres were converted from pasture to row crop the last several years. Pasture ground is at a premium in many ares of the state and if you have a property that has good pasture and good rec ground selling prices are very strong.

When is a good time to buy? When it makes sense for you and you can afford it. Buying a piece today doesn't guarantee land value increase in 5 years but as a long term investment, history shows it will pay off. Not to mention the value of recreation over the term of your investment - happiness is hard to price out per acre . My $0.02.
 
I am more than willing to buy sooner than later. However I just don't have the sizable down payment that I would like to have saved up yet. Socking every spare dollar away while still maxing out the 401K. It's slow going on my income.

Last year I found a 20 acre timbered parcel for sale that had a partially finished cabin on it for the asking price of 70k. I called asap but the sellers already had an offer. It was for sale by owner and I really wanted it but the seller kinda said first come first served, etc. What they didn't realized is that is adjoined some of Lakoskys managed land. Sellers didn't hunt and never even heard of them!
 
at least your struggle is to buy "more" land. I just hope someday to own SOME land:) preferably the land I hunt already

but I have been watching it as well- ways down the road for me- but definitely something I will pursue at some point
 
Willie said:
As Sligh mentioned, with corn at $5-$7 many "marginal" acres were converted from pasture to row crop the last several years. Pasture ground is at a premium in many ares of the state and if you have a property that has good pasture and good rec ground selling prices are very strong.

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That's a good point. ^^ FWIW, about 8-10 years ago I could stand on any part of my farm and not be able to see a row crop(corn or beans) field. The nearest tilled farm field was about 1/2 mile down the road. Once the corn and bean prices ballooned though...several local farmers shifted ground out of pasture/alfalfa production to corn and beans. So now I can see no fewer than four separate tilled fields, all of which are just across the gravel road from me.

At least one of which is scheduled to go back to alfalfa this year or next year as I understand.
 
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When is a good time to buy? When it makes sense for you and you can afford it. Buying a piece today doesn't guarantee land value increase in 5 years but as a long term investment, history shows it will pay off. Not to mention the value of recreation over the term of your investment - happiness is hard to price out per acre . My $0.02.

I totally agree. I plan of paying mine off and putting it into a trust. CRP will be enough to pay the taxes and I will have something to pass on to my kids that won't cost a dime.
 
Unless you are fortunate enough to get a hidden gem in between the farms of TV personalities, it’s only dreaming to think that 40-80 acres is going to consistently produce big deer. I have 215 acres and it’s not nearly enough to insulate from bad neighbors and EHD outbreaks.A guy needs at least 500 acres in my opinion to grow mature bucks each and every year.To buy something like 500, you need millions of $.A guy would be better off to find a good 500 acre piece, set up a long term lease for $5000 per year that you can walk away from if things are not going well.Budgeting the lease isn’t so bad, especially if you split the cost with another hunter or two.Finding $2million up front to buy land, most of us can keep playing the powerball.
 
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