August Land Report - High Point Land Company

August Land Report

Farmland Prices for the month of August 2019 showed stability and trending upward. There were many farms sold in every category with many different sales methods utilized.
High-quality property continued to bring top dollar while medium to lower quality tracts again were responsible for the stability. In Iowa we saw multiple high-quality farms go over $10,000 per acre, Wisconsin followed with over $7,200, and Minnesota in the high 6’s to low 7’s on the choice tracts. The recreational property followed suit with properties having great quality bringing well over $5,000 per acre in Iowa and Wisconsin and in the $3500-$4000 range in Minnesota. The medium to low quality tracts sold 25-55% lower depending on neighborhood, organic certification, timber quality, building site availability, and scarcity in the markets.
One point of major interest is the number of “investor” non-farmer buyers we have seen in the marketplace. With an interest rate decline, big stock market swings, and great rent support we have seen many non-operator or lease back situations taking place. Our buyers on tillable acres were more investor buyers than farmer buyers this month. Hunting land buyers this month were primarily people looking to build in the country, 1031 exchanges, stock market exits, Legacy purchases, and partnerships primarily focusing on whitetail deer hunting.
Land as an investment is often overlooked due to it not being very “noisy” in the grand scheme of investment options. Land as an investment not only produces a stable return but offers some unique opportunities that other investments cannot. Land as an investment provides our buyers with security, usability, infrastructure depreciation, appreciation, and cash flow.
If you or someone you know is interested in buying or selling land, have them give one of our agents a call. These people are top notch when it comes to answering land questions and most have owned many farms personally over their lives. We wish everyone a safe and prosperous start to harvest and hunting season.

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