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Clarke Co, Iowa | Each first of each month Jim Rothermich posts all the farm land auction sales for the past month. I was just looking at the March sales results.
Here is what I noticed
1. 74 properties were sold that published the sale prices. For a total of 7254 acres.
2. CSR2 numbers ranged from 32 to 98.
3. Price per acre ranged from $1925 on a 35 CSR2 property to $12,300 on an 83 CSR2 property. That's a bottom price $800 below the poorest farm and top price $1,300 above the best farm.
4. Price per acre based on farm average CSR2 has a huge range. With a low of $47 per point in Davis Co. to a high of $147 per point in Sioux Co.
5. The weighted average CSR2 of all farms sold was 65. Which puts this set of farms 4 points below what ISU lists as the overall state average.
6. The weighted average price per acre came out to $5569. Not even close to ISU's November 1, 2019 average price of $7432.
My take on this. The worst time to sell a farm is in the spring/early summer. The best time to buy a farm is spring/early summer. CSR2 is useless in predicting a farms value. The right location is worth thousands of dollars per acre. Poor farm layout (odd shaped and small fields) can cost as much or more. Finally the experts that are telling us land prices are stable my not have your best interest in mind. To me March looks to be 25% below last November's numbers. | |
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Farm land for investment?????
