Despite higher cash rents and rising input costs narrowing farmer profits, the majority of buyers of farmland in the north-central region continue to be farmers. In Iowa, top quality land is selling at more than $12,500 per acre, Minnesota values are reaching $9,500 per acre, and values in eastern South Dakota have reached $8,000 plus in many areas.
Iowa farmland sells for $17,000 per acre at auction in central Iowa
On January 4 the sale of 375 acres of farmland near Nevada in central Iowa shows that confidence is still strong in the Iowa land market after the 'fiscal cliff" fiasco in Congress was averted. Congress, waiting until the last minute to act, reached an agreement with the Obama administration on January 1, avoiding significant tax increases and huge federal spending cuts that were to automatically go into effect. President Obama signed the legislation on January 3 and the new tax law is part of that "catch all" package.
The sale of the 375.26 acres north of Nevada in Story County to neighboring farmer Dale Swanson and his son Richard brought in $6.38 million to the Board of Pensions of the Annual Conference of the United Methodist Church, which had owned the land since 1978. "We were very pleased," said the Rev. Beverly Bell, spokeswoman for the conference. "This is the last parcel of land we have to sell and the time was right."