Farm Sold for $152 per CSR2 point in Hancock County, Iowa

This week a 120 acre Hancock County farm sold for $152 per CSR2 point.   Part of the purchase price was rolled in from a sale of some other commercial property by the buyer, the remainder was borrowed.

Other notable sales which are similar to this have been rumored to have taken place in Iowa. A Poweshiek County 146 acre farm sold on Dec. 1 for $10,600 per acre, or $132.2 per CSR2 point.

Does this mean that all farms are UP?

Not necessarily.  The configuration of this farm was perfect, a rectangle.  See our older blog posts about this topic.

The drainage was near perfect.   A deep drainage ditch along the side of the farm is a pretty desirable feature.

Location, Location, Location.  This was pretty much in the middle of nowhere.  Easy to access from all directions, no man made or geographic blockades, like city limits, rivers, interstate highways.  That is good, too.

Timing is also everything, a 1031 buyer is a good thing, but they still will not pay more than a 20% premium -- why would they?

Several sales are pending which are private, there are several auctions coming up.

The world is a growing, hungry thing.   These Thousands of refugees and immigrants are rapidly going to change their diets from beans and rice to beef, pork and chicken,  well, beef and chicken for sure!