Mid December Farmland Sales in Iowa Strong! Well Over $100/CSR2 Point!

Mid December Sales which we saw in our office during the week of December averaged $126 per CSR2 point. 

Many appraisers are guessing at about $100 / CSR2 point on farm land lately.   

These  3 farms bought by 1031 exchangers in this case sold for $104, $118 and $156 per CSR2 point.    This is impressive. 

These farms were all rectangular in shape with no angular "point rows" and they were all capable of good drainage or had good drainage.  The only one with 'problems' was the $104 per CSR2 point, as you may imagine, it appeared to have a historic wet spot in the North Central part of the farm.

These farms were in Section 36 of Burt Twp, Kossuth County, Section 6 of Britt Twp, Hancock County, and Section 7 of Garfield in Hancock. 

They were good farms.  One of the farms had some CRP but it was slated to come out in October, 2016.  It could be signed back up at a much better rate or farmed.  My guess is that it will be farmed.

CRP contracts always look good on the front end and, like fish, get worse the longer they are around.