Iowa saw a monumental jump in land sales and land prices over the last year, according to Farmers National Company.
Increasing land prices coupled with more farms being sold created new peaks in real estate sales in Iowa during 2021 for Farmers National Company. Randy Dickhut, senior vice president of real estate operations for Farmers National Company, says the amount of land sold by the company was up 152 percent over the previous year, with auction sales up 129 percent.
?Iowa was kind of the focus that was leading land prices up, and the amount of land that got sold. We as a company had a huge increase in the amount of auctions we had during that October through December timeframe at the end of 2021 compared to the previous year.?
Higher grain prices, past government payments, better yields than first thought, and stronger farm incomes prompted increased demand for good cropland in Iowa last year. Dickhut also adds that the once assumed potential for changes in tax laws affecting real estate sales brought more landowners to sell their farmland.
?We?ve seen this before. That happened basically in 2012 also when there were some threats of tax law changes or anticipation of it. It prompted those recent inheritors or a family group that inherited that farm to sell it now to have that bird in the hand, so to speak.?
Brian Mohr, area real estate sales manager for Farmers National Company, believes the land market in Iowa will be active again in 2022. A video interview with Randy Dickhut can be viewed below.
