Land auctions picked up the last month of the third quarter. According to Terva, an online real estate marketplace, September tested the Iowa market with more land being auctioned in than any month in 2017.
“The Q3 data indicates a very stable market,” Jim the ‘Land Talker’ Rothermich says.
Data suggests Q3 is down slightly from Q2 by -0.4% on 85% tillable farms. The market has gotten stronger throughout the year and even with more land being auctioned, the market appears to be very strong.
“Harvest is just getting started. I am hearing yields are better than expected however, farmers typically harvest the best fields first. As harvest progresses, it will be interesting to see yields continue to exceed expectations,” Rothermich says.
Rothermich says when he talks to realtors, November and up to mid-December will be very active for land auctions. So far, more inventory of land for sale has not affected land prices.
“If yields continue to exceed expectations, I expect this trend to continue. Why? Higher than expected yields brings optimism. I am of the opinion, if you are thinking of selling farmland in the near term, the demand to buy is currently out stripping the supply for sale and is creating a ‘sellers’ market,” Rothermich says.
Rothermich has nearly three decades of experience in the farmland real estate industry.