Easing Trade Uncertainty Brings Farmland Auction Action
Auction Block Heats Up
This winter's farmland auction market could be the busiest since 2022, as stronger grain prices and a less-uncertain trade environment coax sellers back to the market.
"This is probably the brightest outlook for the farm market that we've had in the past couple of years," says Doug Hensley, president of Hertz Real Estate Services, based in Nevada, Iowa, whose firm brokers land in Illinois, Iowa, Minnesota and Wisconsin. "This year, with a stronger grain market, I feel like that's giving a little bit of incentive for people who have thought about selling to push into the market."
Competitive bidding at auctions helped farmland values surge coming out of the pandemic, fueled by strong commodity prices, rising farm income and low interest rates. Corn Belt cropland values climbed nearly 22% from 2021 through 2023, according to USDA. Values have continued to increase since but at a much slower pace, as farm incomes retreated from their 2022 peak. Brokers say sellers shifted sales away from public auctions toward private sales and sealed-bid sales.
Jim Rothermich, vice president at Iowa Appraisal, based in Des...