A $1.54 Million Iowa Farm Sale Comes with One Important Condition
- Brooke Bouma Kohlsdorf
- 5 hours ago
- 3 min read
A 154-acre farm near Indianola, Iowa, sold at auction this January for $1.54 million, but it wasn’t a typical land sale. Along with the ground came one important condition: the longtime owner, Gwen Hodson, 93, will be allowed to remain in the farmhouse for the rest of her life.
Seller Stays in House
The property, which sold for $10,000 per acre, had been in Hodson’s care for more than 50 years. She and her late husband, Donald -- who passed away in 2002 -- raised horses and cattle there and made a living from the land. While Hodson knew it was time to sell, leaving the home she has known for 57 years wasn’t something she was willing to do.
“It’s peaceful here,” Hodson said. “Almost like going to heaven.”
Her broker, Jason Smith of DreamDirt, structured the sale with an agreement that allows Hodson to live in the home rent-free for as long as she is able. The condition didn’t slow down interest. The online auction attracted 12 bidders from five states, with a local investor ultimately securing the winning bid — right in line with Smith’s expectations.
RELATED: Another farm sale in Iowa last year also had a unique twist: the local community was the beneficiary.
Property Details
The farm sold as a single tract and offers a diverse mix of uses. About half the acres are considered tillable farm ground with the remainder in pasture and hay. The property also includes a pond, multiple fenced areas, a large outbuilding with propane heat and water, and a wooded perimeter surrounding the home. A quarter-mile driveway leads to the farmstead, and the land backs up to the Summerset Trail, which connects to the Des Moines Parks system.
The ground is currently rented for the 2026 season, with the seller receiving a rent credit of $14,714. Smith expects the new owners to continue leasing the land to a local farmer for crop and cattle production.
Location Brings Value for Iowa Farm
Location played a major role in the final price. The farm sits about 15 miles south of the Des Moines airport, offering proximity to the metro while still functioning as a working agricultural property. According to Smith, that combination of production value, lifestyle appeal, and long-term flexibility often drives stronger bids.
“It changes the buyer mix. And the buyer mix changes prices,” Smith said of the land’s location.
He added that if the property had been located one or two counties farther from the Des Moines area, it would have sold for $5,000 to $7,000 an acre, not $10,000.
“If a bidder sees future flexibility, they will often pay more for a property even if it is something that they won’t farm. They just see the potential of the land,” Smith said.
RELATED: An Ohio farm located near a fast-growing city sold for a price that surprised even the brokers in charge of the auction.
The sale also reflects broader land value trends. Iowa State University’s most recent Land Value Survey places Warren County farmland at an average of $10,578 per acre, closely matching this sale.
For Hodson, the transaction brings peace of mind. She is pleased the land will be farmed by someone new, but she is grateful she can continue enjoying the place that holds a lifetime of memories.
