This is the final installment of my five-part series on the most important factors that influence farmland values. So far, these have included commodity prices, interest rates, input prices and land sale volume.

This month’s focus is on local historical wealth. Out of the five mentioned factors that influence land values, this one may be the most ambiguous, as it can be difficult to develop a precise measure of “local wealth.”

We all know those neighborhoods where land values seem to include a premium that is not common to the broader market. Some may call it an “old money” neighborhood. Over time, my observation has been that many of these financially vibrant neighborhoods have a correlation to very productive soil types — and often, a diversity of enterprises.

For example, consider the highly competitive and record-setting land sales in northwestern Iowa. It just so happens that O’Brien County (No. 1), Osceola County (No. 3), and Sioux County (No. 4) have three of the top four Iowa county average Corn Suitability Rating index (CSR2 ratings). (Grundy County in central Iowa is No. 2).

Over the long term, areas with the most productive soils will outperform other areas, and this long-term benefit accrual creates a fertile environment for wealth creation. In addition to consistently strong soils, there is also a significant livestock presence in northwest Iowa that provides earning and income-stream diversity. Add in productive livestock operations with access to manure, and you have another enhancement to top-quality soils.

In my view, it all starts with the basic quality of the land. I recognize this principle does not play out on every single sale that occurs in an entire market. But more often than not, the general principle will hold. And so, I’ll conclude by saying again — from area to area, I have observed a strong correlation between quality of soils, local historical wealth and the competitiveness/strength in local land markets.

Buena Vista County. Southeast of Sioux Rapids, 78 +/- acres recently sold at public auction for $14,100 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 (corn suitability rating) of 85.3, and equaled $174 per CSR2 point on the tillable acres.

Mitchell County. Near Riceville, 153 +/- acres recently sold at public auction for $7,900 per acre. The farm consisted of 142 +/- tillable acres with a CSR2 of 71.1, and equaled $120 per CSR2 point on the tillable acres.

Clayton County. North of Strawberry Point, 406 +/- acres recently sold at public auction for $9,410 per acre. The farm consisted of 332 +/- tillable acres with a CSR2 of 50.0, and equaled $230 per CSR2 point on the tillable acres. Note: This aggregation was offered in seven auction parcels but was purchased as a single unit. The non-tillable land was primarily timbered draws, terraces, waterways and waste.

Calhoun County. Southwest of Rockwell City, 57 +/- acres recently sold at public auction for $12,750 per acre. The farm consisted of 56 +/- tillable acres with a CSR2 of 88.7, and equaled $146 per CSR2 point on the tillable acres. Note: This farm was under lease for 2024, with the buyer receiving a $300-per-tillable-acre cash rent credit.

Hamilton County. East of Stratford, 80 +/- acres recently sold at public auction for $15,600 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 81.8, and equaled $198 per CSR2 point on the tillable acres. Note: This farm included a wind turbine built in 2022 with an annual payment of more than $18,000.

Clinton County. Southwest of Comanche, 80 +/- acres recently sold for $13,800 per acre. The farm consisted of 77 +/- tillable acres with a CSR2 of 77.3, and equaled $185 per CSR2 point on the tillable acres.

Fremont County. South of Bartlett, 132 +/- acres recently sold at public auction for $8,700 per acre. The farm consisted of 131 +/- tillable acres, with a CSR2 of 70.9, and equaled $123 per CSR2 point on the tillable acres.

Wayne County. West of Corydon, 160 +/- acres recently sold at public auction for $7,100 per acre. The farm consisted of 142 +/- tillable acres with a CSR2 of 43.9, and equaled $182 per CSR2 point on the tillable acres.

Washington County. South of Wellman, 80 +/- acres recently sold at public auction for $20,750 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 86.0, and equaled $254 per CSR2 point on the tillable acres.

Hensley is president of Hertz Real Estate Services, which compiled this list, but did not handle all sales. Call Hertz at (515) 382-1500, (800) 593-5263 or visit hertz.ag.