Today a lot of ag news focuses on the declining farm economy with lower commodity prices and lower cash rents. The last 4 years have been hard on agriculture and today new sellers coming into the land market have some insecurity being bombarded with bad news. While prices are not what they were 4 years ago we still have a very strong land market especially for farms that are new to the market. Very typically these are farms that are part of an inheritance or farm retirement with no recent sales history. Thats not to say that you can't do well on a farm thats been owned for a short period, you can but each situation is different.
The news about farmland values declining can be deceiving because it lumps the entire state into one category "land" when in reality the numbers that are relied on for such articles are almost always derived from "averages" of estimates by auctioneers, brokers, bankers, appraisers etc in a certain area and not actual sales statistics and results. Averages are a matter of finding the middle between low and high Iowa farmland sales and while its a good system, it can be deceiving to the individual land owner. The truth is you can never know what your farm is worth until you have it evaluated with an experienced professional with the resources and knowledge to help you determine the value of your farm.
The south central Iowa land market has always attracted a great deal of attention from the Des Moines area. A lot of investing activity from the Des Moines are occurs within a 75 mile radius of Des Moines. Either direction from Des Moines offers different value points and different options in farm real estate but south central Iowa offers something very unique that is very appealing to certain investors and that is the recreational value and what I call "Community" South Central Iowa has long been known for its deer hunting. People come here from all over the United States to hunt here and many of them own land. Its really a no brainer investment for an investor from Des Moines that likes to hunt to own south central Iowa land. For them farmland offers an annual income, appreciation in price, certain tax advantages and a hard asset they can use and enjoy. Compare that investment to say stocks or business ownership and you can see why investing in farmland with recreational opportunity really makes sense and especially given its proximity to home.
Recreational land isn't the only farmland available, this is Iowa and we are among the top when it comes to beef, pork, corn, soybeans and egg production. South Central Iowa offers tremendous potential for ag investing for production agriculture. Its not uncommon for northern Iowa farmers coming from areas with very high farmland prices to buy farms in south central Iowa. This happens very frequently with cattle producers that can pasture cattle on large tracts of land in south central Iowa and relocate or market the cattle directly from south central Iowa. It also happens with row crop land where purchases in southern Iowa can help consummate a 1031 exchange or just for geographic diversification of ag assets.
From hunting land, row crop tillable farmland or pasture land in south central Iowa there is great demand today for new listings and auctions. 2017 farmland sales have been very low in Iowa farmland sales and the appetite for farmland and hunting land purchases continues to grow.
As an land broker and auctioneer at DreamDirt I have access to the tools, data and people plus the education and real experience to help you market your farm to the best buyer in the shortest period of time. At DreamDirt we offer the most complete farmland marketing system available and its the reason so many sellers trust us to sell their family farms after many generations of ownership.
Choosing a broker or auctioneer to handle your south central Iowa farmland sale can be very confusing. There are many options but DreamDirt offers something truly unique in the Iowa farmland market. From being a company with a multi-state network of buyers, the top in land sales technologies, both auction and listing options and the leading digital marketing farmland company in Iowa to our exceptional team of farmland professionals and support staff with highly reviewed customer service etiquette you'll have a very smooth real estate experience with top of the market results.
With vast experience selling farmland by listing and auction give me a chance to tell you what I know about selling your farm. I want to offer you a free consultation in person, by phone or email, whatever is most comfortable for you. I'll give you a free custom written market analysis for your farm, a proposed marketing plan and timeline along with an estimate net proceeds worksheet to show you what goes in your pocket in the end.
Tom Bradley, Auctioneer | Land Broker Licensed in Iowa
You can get a free valuation by filling out the form on this page or just go to our Free Market Analysis page or if you want to just give me a call to visit on the phone I would be glad to do that. You can also email me at Tom@dreamdirt.com
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