Local Demand Continues to Drive Strong Farm Sales in Iowa
- Brooke Bouma Kohlsdorf
- 3 hours ago
- 3 min read
An 80-acre tract of farmland in Carroll County, Iowa, sold in mid-July for a price that topped many recent comparable sales in the area. The 79.2-acre farm brought $16,900 per acre, or $1,338,480 total, during a live auction on July 14.
Adam Pick of Farmers National Company said the property, located just outside Glidden, had several factors working in its favor.
“This farm had a lot of value because of where it is located,” Pick said. “Glidden is a strong agricultural area, with high-quality land and reputable operators.”
Local Interest
The auction generated interest from both local and outside buyers, but local farmers ultimately drove the bidding.
“There were a number of outside investors who called before the sale and expressed interest,” Pick said. “But the serious buyers who registered to bid were local farmers.”
About 10 bidders attended the auction in person, while another 10 participated through the online simulcast. Several spectators also showed up to watch the sale.
Seller and Buyer
The farm was held in a trust, and the family chose to sell the property while retaining ownership of other farmland in the area, Pick said.
A local farmer bidding in person ultimately secured the winning bid, narrowly outlasting an online bidder. Pick said the buyer already owns farmland nearby and plans to add the acreage to his existing operation.
Land Features
Several characteristics helped make the property attractive to buyers, starting with its location in an area where farmland rarely comes up for sale.
“Ground does not typically hit the market in this area,” Pick said.
The size of the tract also appealed to a wide range of prospective buyers.
“The parcel is very desirable,” Pick said. “Eighty acres is a good-size farm purchase for many buyers.”
Land quality was another major selling point. The farm carries a Corn Suitability Rating (CSR2) of 83.2. CSR2 is an Iowa index used to measure soil productivity for row crop agriculture, particularly corn, on a scale of 5 to 100. A rating above 83 is generally considered highly productive.
According to Farm Service Agency records, the farm has a corn base of 45.88 acres with a program yield of 171 bushels per acre. The soybean base totals 32.34 acres with a program yield of 54 bushels per acre.
The property sits directly south of U.S. Highway 30 and is almost entirely tillable. Of the farm's 79.2 acres, just 0.98 acres is classified as non-cropland.
Annual property taxes total $3,150.
Iowa Farmland Values
The $16,900-per-acre sale price was well above both the state and county averages for farmland values.
According to the most recent Iowa State University Land Value Survey, the statewide average is $11,549 per acre, while the Carroll County average is $13,239 per acre.
The survey found Iowa farmland values increased 0.7% from the previous year. In comments accompanying the report, survey author Dr. Rabail Chandio noted that while strong yields, limited supply, and steady demand from both farmers and investors helped support the market, those factors were not enough to generate broad-based growth.
Even with some headwinds facing agriculture, Pick said demand for quality farmland remains steady.
“I would say it's resilient,” he said. “For the most part, values have been surprisingly strong.”
He pointed to recent sales in western and southern Carroll County as evidence.
“There have been some strong sales across a range of CSR2 levels,” Pick said. “But if a farm is located in a strong area, it should still bring a strong price.”
Reflecting on why this particular farm sold so well, Pick pointed to two key factors: the limited supply of available land and the willingness of local buyers to act when an opportunity arises.
“Certain pockets of ground do not come to market very often,” he said. “So, when they do, they sell well. Certain areas also have financially strong buyers who are ready to pounce when land becomes available.”
RELATED: These five sisters learned how difficult it can be after a family decides to sell the farm but doesn’t have a succession plan.
