Intense Competition for Rare Iowa & Minnesota Land Results in Strong Prices
In an area where farmland rarely changes hands, Monday’s auction of 1,656 acres offered a chance for true price discovery. And the market responded with a large turnout of more than 312 bidders, resulting in land prices as high as $13,100 per acre.
Some live bidders sat in their trucks, listening to the auctioneer on their radio. Others stood outside or in a heated shed. More than 200 followed the auction and did their bidding via the Internet. In the end, the auction brought prices on tillable land averaging well over $10,000 per acre.
“It was really amazing. When we opened bidding on a tract, we’d get so many bids at once that it quickly shot up to $10,000 or more. When farmers and landowners see prices of $150 per CSR point, it’s going to get their attention,” said Steffes Representative Nate Larson.
“Iowa farmers have long depended on the auction method because it is a fair and open way to conduct business. So for land of this quality, which so rarely comes on the market, I’m not surprised to see the response. I understand that this was the first land auction in Hesper Township in 40 years, so I think the market welcomed a competitive picture of prices there,” said Larson.
Logistics for a large auction are always challenging, especially with the need to provide for social distancing on a cold winter day. Ten ring people relayed bids, and when bidding ended, there were 15 successful buyers, with the largest purchasing six tracts totaling 574 acres.
The auction also included two homes, barns, shop buildings, sheds and barns, as well as grain storage and dryer for 340,000 bushels.
Individuals with land to sell may call Nate Larson at 319.931.3944 or find the Steffes office nearest them by visiting SteffesGroup.com.