Iowa Farm Sale Proves Quality Land Still Commands High Prices Even as Farmers Struggle
- Brooke Bouma Kohlsdorf
- 1 hour ago
- 3 min read
A 128-acre farm in southeast Iowa sold at auction in late March for a total of $2,095,250, or $15,674 per acre. The Louisa County property was offered in four tracts, including a 79-acre parcel of cropland and three smaller timber tracts. A fifth parcel featuring a home in nearby Henry County was also part of the auction.
The farmland was the clear highlight, drawing strong competition and ultimately selling for $21,050 per acre.
John Probasco, senior auction representative with Merit Auctions, said that figure is exceptionally strong for the region, possibly even a record for Louisa County.
The sale attracted widespread interest from both in-state and out-of-state buyers.
“There were 46 bidders registered from at least 12 states,” Probasco said. “We had very active bidding. It ultimately came down to two bidders, but there were 15 to 18 serious participants competing for the land.”
In the end, two buyers each purchased two tracts. The 79-acre parcel generated the most interest, selling for $21,050 per acre.
Farmland Values Stay Strong
Farmland values continue to draw attention both inside and outside the agriculture community.
Joe Vaclavik, host of the Grain Markets and Other Stuff podcast, opened his daily show Monday by discussing the sale. Vaclavik is the founder of Standard Grain and previously worked on the Chicago Board of Trade. He noted that such valuations can be difficult to justify from a farming perspective.
“As far as a farming operation is concerned, this sort of valuation or cost doesn’t make sense,” he said.
However, Vaclavik outlined four key reasons land values remain elevated, even as farm profitability tightens.
First is land scarcity. Farms that come up for sale, especially high-quality tracts, may only be available once in a lifetime, prompting aggressive bidding.
Second is optionality. Emerging opportunities such as solar energy projects and data centers are creating new long-term income streams through land leases.
Third is continued interest from institutional and outside investors.
“Long-term returns are good,” Vaclavik said. “Some estimates suggest Iowa farmland averaged a 12.7% annual return from 1970 to 2025. That’s better than the S&P 500 with less volatility.”
Finally, government payments may influence investor confidence.
“If you are an outside investor, one thing that might cross your mind is that farmers are going to keep paying cash rent because the government keeps giving them money,” he said. “In that sense, the government helps backstop the investment.”
Soil Quality Matters
According to Probasco, the sale underscores the enduring value of high-quality farmland.
“We had so many bidders because it was a nice, rectangular piece with a high CSR2,” he said.
“That’s appealing to a wide range of buyers.”
The Corn Suitability Rating (CSR2) for the farm is 88.4. The index, used in Iowa, measures soil productivity for row crops on a scale from 5 to 100.
Two buyers ultimately split the property. One purchased the 79-acre cropland parcel along with an adjoining timber tract, while another acquired the remaining timber tracts.
Recreation Land Also Draws Interest
While the three wooded tracts are not suitable for crop production, they highlight the ongoing demand for recreational land.
The timber parcels sold for $8,200, $2,800, and $1,900 per acre. That’s well below cropland prices but still competitive, according to Probasco.
He noted the property’s strong appeal for outdoor enthusiasts.
“It was a sportsman’s paradise,” he said. “It had been overgrown and largely untouched.”
Marketplace Trends
According to the 2025 Land Value Survey from Iowa State University, farmland values in Iowa increased just 0.7% last year, bringing the statewide average to $11,549 per acre.
At the county level, values can vary significantly. In Louisa County, the average land value is $11,632 per acre. This sale, at $15,674 per acre, exceeded the county average by roughly 35%.
Probasco said results like this reinforce ongoing demand for quality land.
“Demand is there,” he said. “Especially for high-quality soil.”
He added that while fall has traditionally been the busiest season for land sales, that pattern is shifting.
“You can have a sale at almost any time of year now and find ready buyers,” he said.
RELATED: This Iowa farm sold for more than $1.5 million, but it came with one condition.
