Land prices for the month of October 2019 trended flat, however there was an increase in sales volume over the previous month. We have nearly tripled the amount of land sold company-wide over the previous month and prices remained stable in every category. In volume of land in specific categories we saw more acres of tillable land trade than timberland, which is due to tract size. The number of timberland vs the number of tillable land sales were very comparable. Land prices for hunting land ranged from $3000-$6000 per acre based on income, building site quality, deer management neighborhood, and state. Timberland is applicable as ”like-kind” real estate from a 1031 exchange perspective; so we did see that purchase method used multiple times exiting other land, commercial, or income producing residential real estate.
In tillable land, we saw ranges from $5000-$11,000/acre; this is again based on quality of CPI or CSR2, water or drainage, field size, rent ability, access, exposure, and geographic location. The prices in Iowa to be higher per quality point than Minnesota or Wisconsin land prices.
The question comes up consistently; “What are land prices doing?” This question obviously has many answers; although the stock market and economy are strong and interest remains low. We are experiencing tough Ag markets and weather in some areas, but the support from non-operator buyers or diversified operators out of farming is keeping the market strong. We have nearly 500 acres scheduled for auction in November and December, and we are expecting the market to be very strong through 4th and 1st quarters.