Land News Archives - High Point Land Company


What is Land Selling for This Month

Harvest is in full swing as we enter October! Land Prices for the month of September 2021 remained very strong remaining stable as we close on Quarter 3. Looking ahead, we currently have 3,500+ acres scheduled for auction in Q4 across Iowa, Minnesota and Wisconsin, featuring A+ quality farmland, prime recreation ground and highly sought after building sites. In addition to upcoming auctions, High Point also has 3,600+ acres available via listing across Iowa, Minnesota, Wisconsin, and Colorado. Properties available feature gorgeous acreages, investment-grade farmland, prime hunting & timber land as well as ranches available and multiple commercial opportunities.

Auctions continue to “set the bar” across the land market and show no signs of slowing. In Iowa, High Point auctions have averaged over $160/CSR2 point across tillable acres and an average of nearly $10,500/acre. The land market continues to exhibit strength strong for 4 main reasons remaining consistent with last month’s newsletter. Interest rates on land are consistently in the 3-4% range allowing the buyers and operations to have a lower payment and pay more for the property. Pair this with longer amortization schedules, rate lock terms and aggressive lenders competing with one another and you have favorable buying conditions. Commodity prices, particularly corn and soybeans remaining stable in the mid $5’s and mid to high $12’s as we enter harvest. Prices remaining high allow operations and farms to expand, especially when paired with low interest rates. Throughout 2021 we have experienced low volume in the land real estate market, echoing other sectors of real estate markets. Government payments combined with other favorable buying conditions led to increased demand from buyers across all real estate markets. This increased demand has remained consistent, if not increased, today as favorable buying conditions allow buyers to pay more per acre without their payments increasing and land is turned to as a more stable investment to escape the volatility of other markets. Other markets continue to inflate and have a high cost of entry, land is looked at as a safe investment which allows you to experience a consistent rate of return, appreciation, tax benefits, and the benefits of increasing equity through time which comes with real estate investment.

While we are beginning to see an increase in volume come to the market, there simply is not enough supply to keep up with the build up in demand. The long list of registered bidders for each land auction echoes this statement. It could make a lot of sense for your family or operation to explore a sale in this market. There is still plenty of time in Q4 to close on your property. Whether you are considering a sale or adding acres, give one of our land agents a call today.

Another area where we continue to see growth is our land appraisal department that tracks every sale to use as comparables for appraisals for banks, estates, land owners, trusts, and many other purposes. If you are wondering what a property is worth in today’s market, making a purchase, or settling an estate and are in need of a land appraisal in Minnesota or farm land appraisal in Iowa our team appraisers are very quick and cost effective.

Have a safe and successful harvest and thank you to all of our wonderful clients.

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What is Land Selling for This Month

Land Prices for the month of August 2021 remained very strong at levels similar to the previous month. This time of year we are focused on scheduling upcoming land auctions, compiling inventory of deer and wildlife photos on listings, and looking at tillable land rents or new tenant contracts for next years growing season. In the state of Iowa for example the deadline to terminate a farm lease for the next growing season is September 1st. In the event the farm lease is not terminated it continues automatically on a year to year basis based on the current terms of the agreement unless proper notification is served before September 1.

The land market has remained strong for 4 main reasons. First interest rates on land are consistently in the 3-4% range with lenders today in the area from our experience. This allows the buyer to have a lower payment and pay more for the property. Pair this with longer amortization schedules, rate lock terms and aggressive lenders competing with one another and you have favorable buying conditions. The next reason is commodity prices from timber to corn, soybeans, hogs, wheat, cattle, hay, etc have all fluctuated and for the most part much higher than they were a year ago. When this happened people who operate in this space as a farmer or landowner see an increase in revenue and buy more land. Third was covid, not only did this pandemic drive people to the country, smaller communities, and rural in country travel it also made people realize that life is short and want to own something of their own for reasons of food, water, and protection as well as enjoyment out of the city. This increased demand and reduced supply in an already tight market. The last reason land prices have increased and in my opinion will continue to, is the stock market being too high for new investments and buyers wanting a secure place for their money. Once you have made money the goal is to keep it, and there is no better way to do that then purchase a tract of land that produces income from food production.

One thing we do not bring up nearly enough is our land appraisal department that tracks every sale to use as comparables for appraisals for banks, estates, land owners, trusts, and many other purposes. If you are wondering what a property is worth in today’s market, making a purchase or settling an estate and are in need of a land appraisal in Minnesota or farm land appraisal in Iowa our team appraisers are very quick and cost effective.

Enjoy the remainder of your summer and thank you to all of our wonderful clients.

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What is Land Selling for This Month

As July comes to a close, land prices across the Midwest continue to trend upwards. An echo of last month’s land market update, much of the growth and upward trend continues to be most prevalent in auction sales. High Point Auctions in the month of July across Iowa sold at an average of $141.50/CSR2. High Point Agents have 8 additional auctions that have been scheduled for fall across Iowa, Minnesota and Wisconsin. With auction prices continuing to set the precedent, an auction, either before or after harvest is the best way to get top dollar for your farm. Tillable land continues to see the greatest increase, although we are also realizing increases across all categories (timber, recreational, development, pasture, etc.).

The land market continues to surge primarily due to interest rates reaching all time lows in certain loan options, as well as commodity prices rebounding to over $5.50 corn and $14.50 beans. In national news, drought continues to be a concern particularly for the Dakotas and Western United States. Locally, Northwest Iowa and Southwest Minnesota show the greatest affect by drought, crop conditions across Iowa as a whole have improved since the end of June. Also in national news, nominee to the chair of Undersecretary of Agriculture voiced support of expanding Crop Insurance, Carbon Credit Commodities, & CRP Enrollment. In relation to the land market, land owners and operators should keep an eye out for increased CRP incentives in order to meet the proposed “30×30 plan”, a proposed plan to conserve 30% of the nation’s land by the year 2030. 

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What is Land Selling for This Month

While many are exclaiming that the country and economy are “returning to normal”, I fall into the camp that is settling into a “new normal”. This thought carries over into the state of the current land market. Strong commodity prices, and land owners seeing the effects of government payments last year, are driving the land market forward. Land prices across Iowa, Minnesota, and Wisconsin continue to be stable and trending upwards. Many counties are experiencing 5 year highs in land prices, up almost 15% from last year. The majority of these sales are resulting from estates and retiring farmers. 
My recommendation for those looking to sell in the current market would be to sell via auction in early fall. The reason being, the “new normal” is being established as we speak by market participants, the market is being set by competitive bidding between expanding operations, investors and first-time market entries. In order to achieve the highest price for your farm in the “new normal”, you must have your farm marketed to each of these groups and have competitive bidding occur on auction day. Selling privately at 2020 prices is not doing your farm justice. Other topics to pay attention to which will have a role as to where the market is headed include; weather affecting commodity supply, potential tax changes which will have a drastic effect on land owners, and the effect of the economy reopening and how it affects commodity prices.
In the last month, High Point has made the expansion to Colorado. Colorado Land Specialist, Kyle Lopez, had his input on the current state of the land market in CO. “It wasn’t that long ago that in Colorado, owning a ranch meant solely on owning it for the agricultural value it produced, meaning that the value it produced was tied to the the crops and/or the the cattle that the range could sustain.” Maintaining the theme with the “New Normal”, Lopez continued, “Today in the current market it doesn’t take long to realize that the agricultural value and what used to be know as the agriculture price tag has now shifted to what we call the recreational value. Ranches are now purchased with the intention of making a profit on the resale of that ranch. More importantly, purchasers of ranches have shifted from truly ‘farming’ to enjoying the recreational and aesthetic attributes of the property.”

The major themes seem to be repeated across all markets whether you are in Iowa, Minnesota, Wisconsin, or Colorado. Inventory is low. When properties do come to market and are marketed correctly, land is selling quickly and at strong prices. With a rapidly changing market, it is important to have a market professional at your side. Whether you are looking to buy and lock in a low interest rate, or take advantage of rising prices to capitalize on your farm’s appreciation, our 20 Land Specialists know how to navigate the market and keep you abreast of changes. Another important note, keep in mind potential tax obligations that may come with purchasing or selling land. Whether your transaction involves an estate, partnership, or 1031 exchange, our Appraisal Team also stands ready to assist. 

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What is Land Selling for This Month

Land prices in the state of Iowa, Wisconsin and Minnesota for the month of May 2021 trended stable to higher month over month. Commodity prices and the stock market pulled back and have started to correct back, while interest rates have remained low and stable. Phrases like “welcome back” and “we are back on track” have covered the media nationally and locally the crop is in the ground ahead of 5 year average and much needed rains have been hitting the dry areas.
A few specific questions have arose over the course of the month from our 20 land agentsbrokers, and appraisers. Is land a good investment now? Will land from an estate appraisal be higher if prices have climbed recently? What are walnuts worth in the Midwest? Is land in the Midwest going to go higher? Are rural building prices going to come down?
These questions are all great to be answered by one of our local agents because every market is different. For instance if you are building a home in Trempealeau County, WI on a dreamy parcel of whitetail hunting land; you have to factor in items like steep grades, access to utilities in the bluffs, county requirements, and more contractors in an area with many suppliers and a higher population. Compare this to building a home in central MN or Iowa in the flat tillable land, and you will have many different types of expenses and availability to contractors and suppliers. 
The other question I will elaborate on is the future of land prices in the Midwest. It is a fact that we have more land coming on the market currently than this time last year. The market is absorbing land at a faster rate than it is coming on so if you have been considering selling a parcel over the last couple years that short term range appears to be a great opportunity to sell today with higher prices than where we were a year ago. That being said, prices can always go higher but they can also go down quickly if one of three items change. 
Things that effect land prices in all categories are interest rates, commodity prices and weather. We have seen changes in all of these items over the last month alone paired with major supply shortages. These items quickly change big decisions like building a home, refinancing a property, or making a large equipment purchase. 
Land prices over time have consistently gone up however like anything else they are cyclical along the way. Buying a property is usually a very long term decision, so as a buyer this is an excellent market to do so. If you are able to purchase a property today with a locked-in low interest rate and a long amortization schedule, it allows you to pay more for the property today than if rates were to increase resulting in a higher payment. This is why the current market is so good for both parties sellers and buyers alike.

If you are wanting to buy or sell land, now is a great time. The best way to start is either of these transitions like any large financial decision is to talk to a professional or even have an appraisal completed by one of our certified appraisers. Knowledge is power and if you are looking to do something in the near future, contact one of our agents. They love everything about land and are very knowledgeable on the topic. Thank you again for your business and referrals and have a great start to your summer.

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What is Land Selling for This Month

Land prices in the month of April followed the prediction from the previous month’s article. The unexpected twist was $7.00 corn and $15.00 beans. We were headed up in land prices predicted to hit new highs last month, however that was at prices over $1.00 per bushel less. We have surpassed those numbers and are sitting with very high market prices with a market starving for more land.

Here are some items I think are important to consider outside of the “how high will it go conversation”: Land rents and inputs are behind, and the increase in commodities for the most part was post lease agreement and post preordered inputs. If we look at history, this is going to equate to an increase in input prices, rents, and fuel; which has its own problems headed our way much larger than agriculture. Despite this, we have a projected big year for producers if the crop gets in and we have the weather to successfully grow it. If there are low inputs with increased rents this year or next, the ROI of the farm may present an opportunity to be sold higher in the short term due to the current scarcity in land and capability of operators to pay higher rents.

“When to sell”, is the question we are getting asked it seems hourly lately. In my opinion, we have a major shortage in the market currently with buyers paying higher than ever prices in every category. If I were to recommend a property sale, it would be midsummer when the crops are up and trees are leafed out, or plan a sale now for fall/post harvest. I cannot stress enough how important it is to have high quality photos, videos, or trail camera history especially to absentee buyers and investors to buy or push a sale price higher at an auction or multiple offer situation. If we can use the summer to put a great photo package of planting and field work together as well as line up 1031 exchange buyers for property, the planning always pays off and the marketing material is beautiful in the event that we have poor weather down the road.

We are currently scheduling auctions for June and July and September through December. If you are going to sell a property in the future, I highly recommend talking to one of our land agents and having a free proposal completed. In this market, a professional’s fees do not cost money, they make money. 
Have a safe planting season and enjoy this wonderful spring we are having!

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What is Land Selling for This Month

Land Prices for the Month of March 2021 were the hottest I have experienced since starting High Point. Here’s why and some insight on where I think we are headed in the short term. First, May contracts for Corn on the Chicago board are at $5.45/bu and $13.96/bu on beans. 1 year ago those numbers were half of that or lower. Next, we have interest rate on land loans not only under 4% for most buyers or refinancers but loan lock terms consistently over 5 years if not over 10 years on 20-30+ year amortization schedules making the payments very affordable. Lastly to name a few more: the timber market is on fire, land rents are increasing far beyond property tax increases and lets not forget about PPP/grant money being received by consumers, farmers and businesses in mass quantities.

If I were to look in a crystal ball and attempt to guess what the future looks like, I would guess that we are headed higher in the short term and leveling from there. Lower quality property may not see a huge increase, however it may have buyers today at good prices that it would not in the future, and here’s why. There is a shortage of all qualities of land real estate being absorbed before it goes to the market. Land is used as a hedge against inflation and is being used for that purpose again. It is also a perception that rents are going to continue to rise bringing “over priced” purchases today into normal ROI’s for tomorrow. The management of land is also very attractive. Hiring High Point as a manager, self managing hunting, or agricultural land is very simple compared to much real estate management.

The downside for land prices when we reference to history as a guide: First, prices have come back to where they were before, so sellers that have wanted to exit at prices that were not achievable in the last 5 years, are now holding out for an increase instead of taking what they would have previously. This is a good idea if you are okay to hold what you wanted to sell in the past. Second in line are the sellers that are considering selling their property and want to take advantage of current locked in tax benefits before they potentially change, like the step up in basis tax advantage. When looking back at sales history, the number of sellers that were too late ended up selling on the way down from a peak, instead of selling on the way up at a good enough new high.

The market is the best we have ever seen it. If you are considering selling a property, we would like an opportunity to have one of our land agents talk to you about your property and the current price that can be achieved. Prices may climb higher, but they also will more than likely decrease quickly or stabilize when they do change. Land has proven to be a wonderful long term stable investment if you are a “buy and hold owner”, however if you have been waiting for a sellers market, the opportunity is presenting itself currently.

Have a wonderful start to spring and enjoy this great weather!

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What is Land Selling for This Month

As the weather has started to break above zero in the Midwest our market has continued to be red hot. Topics of low interest rates, great commodity prices, increased livestock prices, increased building costs, stock market continuous new peaks, land price increases and rental rate increases were are all hot topics for the month. We do quite a bit of land management for property owners and this time of year has landowners receiving their annual rents at a higher rate than last year on average up about 15%. One benefit of land as an investment vs dividend stocks or rental real estate is the rental for the year is usually paid up front in advance for the year at a pre agreed or 3-5 year term price making property tax payments, or expenses easy to calculate and pay in advance once annually.

Monthly collection risks, state mandated eviction moratoriums, quarterly earning reports or unforeseen fluctuations are much less volatile in land also. Land investments currently cash rented are paying out 2-4% however an increase in rental rates, custom farming or renting additional items on land can increase this ROI.

Onto the current prices of land and how they were sold. We currently have more pending transactions than we ever have for February and our buyer lists and requests continue to grow. We need property to sell and we are achieving higher than ever prices for the properties we are selling. 

Selling methods for the month were: on market listings, off market private treaty, online timed auction, and presale online auction. Buyers were half investors and half local operators/personal use. Many buyers used 1031 exchanges or proceeds from existing stock market, or sold other investments to go into more tangible less management asset class of land.

If you or someone you know has a property they are interested in selling and would like an updated value opinion contact one of our agents today. They would be happy to complete a free proposal and plan for your future intentions and answer any of your questions.

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What is Land Selling for This Month

How about this short list to start off 2021?

Corn nearing $5.50, soybeans bouncing around $14.00, another stimulus package with potentially a third on the way, stock market high point ever, new administration tax proposal, China’s largest ethanol
pre commitment ever and record low interest rates to name a few.

To start this off if you are thinking about selling any real estate in the slightest bit contact a professional. Our firm has experienced major price increases and selling off market or at yesterday’s prices could be a major financial mistake. We are in a sellers market currently giving the seller many opportunities to reach their goals.

Land prices have increased on average 5-7% over the last 90 days. High quality property has increased much more than this in most situations and low quality property has less interest however we are starting to repeat 2010-2013 where we saw the high increasing the low along with it.

The opportunity we sit in today has one of two outcomes. First is an increase to a “new normal” over time. Projections show an increase in all markets however, it is a constant that hindsight is 2020. The risk on this lies in the flip side where we create a bubble, interest goes up, grain goes down and demand slows.

In 2010-2013 we saw land sell at prices that we are just getting back to which means we had 7-10 yr plateau or decrease with a struggling farm economy during that time. Land as an investment is an excellent hedge against inflation and time when purchased and managed correctly. If you are in the market to buy or sell land contact one of our agents today to see where the opportunity lays in each market they are a wealth of knowledge on the topic of land.

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What is Land Selling for This Month

Last call 2020! With one more closing on the morning of the 31st to finalize the year 2020 we were thankful for two main items. First, we again had our largest sale year ever growing as a company via sales volume, new agents and staff, offices, and geographic service area. Second, 2020 is over and we are hopeful for an even brighter future. This year offered challenges; however, the opportunities, growth, and stability far outweighed the negatives. We had not only an earth-shattering pandemic, but a presidential election, extreme commodity price swings, interest rate fluctuation, major stock market changes and let’s not forget about Derecho to name a few hot topics.

The year started out with low commodity prices especially in soybeans, corn, and dairy. We had a good spring compared to the previous 3 years of substantial rain and flooding; however, the question was will there be profit in the crop that is going in the ground? Then the Covid lock downs came which had emotions and media running wild; however, landowners, buyers, and sellers all seemed to keep their cool. There were unexpected land opportunities in this time as the stock market plummeted and land continued to be exposed to the market. It was expected from countless calls and emails that land prices were headed south, and the great buying opportunity was headed to land, when what happened was the complete opposite. When PPP specifics were released the “what are land prices doing” conversation instantly changed to PPP opportunities. Checks were issued to Americans businesses and the general public. On top of that financial increase and coming off a 4 year economic run up, people also decided that living in congested cities confined to their homes may not be for them. A week or so after the payments started hitting the accounts, the phones started ringing again and have not stopped since. We have more buyers today for land than we have in the last 10 years and land auctions have more registered bidders from around the country than ever wanting to buy.

As I am writing this article corn, soybeans and wheat futures have just hit their highest levels since 2014. That paired with the above points, record low interest rates, and a newly announced PPP round is setting us for a run up. However, just as the above paragraph showed unforeseen events there will always be change. If you are in the market to sell it is an excellent time to cash out if you have been waiting on the prices to increase.

Land prices: December 2020

Timber Land – $3500 – $7000/ac Tract size, hunting neighborhood, buildable, top or bottom access, deer history and water features.
Tillable Land – $5500 – $14,300/ac CSR2 quality, tract size, available markets, local rental rates, tile, CRP rates, timber quality
Pasture Land – $3000 – $5000/ac Good Fence, Water, Accessibility, Tree cover, clean without rocks

Timber Land – $3000 – $5200+ Tract size, hunting neighborhood, buildable, top or bottom access, deer history and water features.
Tillable Land – $4500 – $13,100 CPI quality, tile, property taxes in the county, and organic operators
Pasture Land – $3000 – $5000/ac Good Fence, Water, Accessibility, Tree cover, clean without rocks

Timber Land – $3500 – $6000+ Tract size, hunting neighborhood/deer history, buildable, top or bottom access, and non-resident interest
Tillable Land – $3500 – $9000 Field size, area, soil quality, investor interest. available tenants, yield history
Pasture Land – $3000 – $5000/ac Good Fence, Water, Accessibility, Tree cover, clean without rocks

Americans want land, they always have. They want to live freely in the country, hunt and improve their own rural paradises, farm fertile soil expanding their farming operations and invest in stable low management tangible real estate. This has held true for generations and will continue through up and down, thick and thin. We are proud to be in the land business and believe in what we do so much that most of our team owns land personally or goes to work every day wanting to. We are thankful for the great professionals that we work with on over 100 farms sold again in 2020. More than anything we are honored that our clients continue to trust us to assist them with what is more than likely the largest financial transaction of their lives. To some it’s just a farm or tract of land, but to you it’s a way of life that your family has called home and we will never take that lightly.

Happy New Year and Thank you!

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Single Location for Departmental Organization

Having a single location for a company’s data files is key in creating a well-oiled, efficient team environment, as well as clear communication to better serve clients. When High Point Land Company realized their appraisal department needed a place to store their comparable sales data and mapping files, they turned to FarmlandFinder Enterprise tools for assistance. 

To learn more about High Point, we interviewed Jacob Hart, their company Founder. We found it interesting to learn how this company is positioning themselves to genuinely help landowners and we hope you do too.

Q: Who is High Point Land Company?

A: High Point Land Company serves all of Minnesota, Iowa and Wisconsin specializing in land sales and management. They provide the farmland industry with support to make the best investments decisions for their clients’ lives and their operations, whether that be tillable farmland, farms, hunting land, marketable timber or pasture ground transactions. High Point is trusted by many with everything land related and is proud to say “it’s what we do, it’s who we are, and it’s what we love.”

Q: What does High Point do?

A: We do live auctions, seal bid auctions, and traditional listings to name a few. Our marketing is also top notch and very direct, effective marketing and the right contacts are essential to getting a property sold. We produce original, high quality property videos and pictures to ensure that your property looks as good as possible to potential buyers. Putting buyers and sellers together and finding you the right property is our job. Whether it’s your first few acres with a small hunting cabin on it, or you are looking for the highest cap rate farm for your 1031 investment, we will find it for you.

Q: What were some problems or issues you were looking to solve before using FarmlandFinder? What was the biggest challenge your business faced?

A: Having a single centralized solution for mapping and data collection for comparable properties used in our appraisal department. We needed to be able to have one place for our team to store and manage our maps and data.

Q: What are the reasons you chose to use FarmlandFinder?

A: Farmland Finder did exactly what we needed a program to do and provided an easy to learn user experience for our team to operate. We were in the process of building our own centralized system for data collection, storage, comparables, templates and mapping. We discovered FarmlandFinder and they already had everything we were creating…so it just made sense!

Q: So far, what are you most excited about using the FarmlandFinder application?

A: The advancements coming down the line and the company’s willingness to personalize our account. We have been working closely with their team to make sure that the tool works the way we need it to.

Read the Farm Finder article here.

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What is Land Selling for This Month

Land prices for the month of November 2020 were again slightly higher. We had many types of properties trade or go pending, multiple land auctions, and many new properties hit the market giving us a very good handle on the current market. Factors affecting the market were low interest rates, increased commodity prices, large crop in some areas, scarcity of available land, and available land lending opportunities. Buyers were 1031 exchanges exiting other qualified real estate, stock market exits, local operators, local business owners, people exiting the city for recreational and home building purposes, and hunting land purchases. Sellers were 1031 exchange sellers, investors, estates, partnership exits, lender forced sales and absentee owners. 
The market overall rose in price and showed strong absorption of available property that had been previously listed. The auction market for tillable property was exceptionally strong with properties selling in a range of 95-130/CSR2 point and over $90/CPI point consistently. Prices varied based on multiple types of quality for example hunting neighborhood, quality of improvements, soil quality, available drainage, exposure, road access, field size, and overall tract size.
Land Prices per state and hot topics this month:
Iowa:Timber Land – $3000 – $7000/ac Tract size, hunting neighborhood, buildable, top or bottom access, and water features. Tillable Land – $5500-$14,000/ac CSR2 quality, tract size, available markets, local rental rates, tile, CRP rates, timber quality
Wisconsin:Timber Land – $3500 – $6000 Tract size, hunting neighborhood/history, buildable, top or bottom access, and non-resident interestTillable Land – $3500 – $9000 Field size, area, soil quality, investor interest. available tenants, yield history
Minnesota:Timber Land – $3000 – $5000 Tract size, hunting neighborhood, buildable, top or bottom access, and water features. Tillable Land – $4500 – $9500 CPI quality, tile, property taxes in the county, and organic operators

Land prices had plateaued for the most part and remained stable through a very difficult time for growers over the last 2-3 years. The increase in commodity prices paired with good crops and low interest has rents, land ROI’s, and prices increasing. We have also seen the largest buyer interest in our experience for rural hunting and buildable properties for homes or cabins. This is the 3rd month in a row we have seen this trend and expect it to continue through the end of the year.
If you or someone you know needs an appraisal or is interested in buying or selling land visit our website at or call us today at 507-218-1243.

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What is Land Selling for This Month

Land prices in the month of October 2020 were mostly higher. We had multiple successful land auctions with the High Point of the month being a quarter section in Grundy County, IA selling for $12,138/ac. This farm sold for $137/ CSR2 point. We also had many successful listings and online/live auctions giving us a very good idea of what the market is currently doing in response to Covid, interest rates, commodity prices, and the upcoming election.
The driving factors for sellers were estate acquired property, election concerns, bank acquired property, and relocation of quality hunting or tillable land. Driving factors for buyers were expansion or consolidation of tillable acres, taking advantage of low interest rates, stock market exits, cash investors expanding into more tillable acres close to current holdings, and buyers expanding hunting land acres or exodus from Urban areas of the country.
Prices for hunting and rural recreational land properties are ranging from $2,500-$9,000/ acre and here is why: when buyers are looking for land, they have an experience planned for the use of that property. It may be to harvest a world class 200 inch whitetail, catch a trophy brown trout out of a private stream, build a dream home 15 minutes from work, sit on a porch and have coffee over a pond or shut a gate and disappear for a month. If you look at different types of recreational land, you have land that is not tillable for one reason or another to have remained non-tillable. These acres might be very steep, have bottom or top access only, flood, may/may not be buildable, be restricted by easement, effected by upwind livestock confinement, or be surrounded by great/not so great neighbors. There are many variables as you can see between the properties and what creates urgency to purchase at the price when offered for sale.
Farmland is very much the same establishing a price based on quality. Farmland this month ranged from $1,750-$12,138 per acre. A few questions are: is it wet, can it be tiled effectively, what is the soil quality, how far from markets is it, what is the fertilizer and crop yield history, is it effected by perpetual easement, is it in the path of development, and what is the tenant market available.
As you can see there is a huge range in land prices for many more reasons than listed here. A property can have a difference of hundreds to thousands of dollars per acre right across the fence. The price of getting a true professional on your side should always more than pay for itself at the end of the day.
If you or someone you know is interested buying or selling a property in the future contact one of our agents today. They are very connected and educated on the topic of land and would be happy to answer any questions you may have.
Good luck in the outdoors and have a safe and bountiful harvest.

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What is Land Selling for This Month

Land prices in Iowa, Wisconsin, and Minnesota were higher with more buyer interest than the previous month. Land sold for many reasons including estates, dissolving business partnerships, clients moving and clients doing 1031 exchanges into other land. The main driver for buyers was interest rates and loan terms as well as scarcity in the market, proximity to current owned land or an operation, rural building opportunities or hunting land purchases in desirable neighborhoods.

There were many negatives that could have affected the market prices of land however did not. There was a ground hurricane in central Iowa that substantially affected the expected overall crop quality and storage capacity statewide. Interesting point was this only changed the prices of commodities 10-15% in the corn and soybean markets. This translates to the crop being strong across the county and supply remaining high.

Land Prices in the month of August, 2020 per acre:

Wisconsin Tillable $4200 – $8000

Wisconsin Timber $3500 – $5000+

Iowa Tillable $6500 – $11,100

Iowa Timber $4000 – $7600

Minnesota Tillable $5000 – $7800

Minnesota Timber $3000 – $4250

Land prices moving forward are expected to remain stable through the end of the year due to interest rates, demand, and hedges against inflation. We have some potential negatives to watch out for moving onward. The election has caused concern due to the proposed tax changes effecting 1031 exchange and the removal of the step up in basis benefiting heirs to estates. This in my opinion would slow the market and be a negative to land prices in the future if there was an administration change.
If you or someone you know is interested in purchasing land, selling a property in the future, or needs a land appraisal contact one of our qualified agents or appraisers today. They are an excellent resource for finding property as well as answering any questions you may have.

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What is Land Selling for This Month

How is farmland selling? What is hunting land selling for? These were the topics of the month as sellers started to re-enter the market and our list of buyers continued to grow. Interest rates, commodity prices, livestock, and milk are all low. The stock market has corrected over the last few months from its low, and the Covid-19 topic has a very different opinion from person to person.
What has caught my eye throughout the month were two things: First was land prices, which were stable to up over June numbers, with some of the rural rental properties and recreational properties increasing in cashflow. Smaller hunting and recreational tracts sold between $4000-$8565 per acre… that is not a typo. Buyers of land especially in the recreational and buildable acreage categories were very motivated and looking for the right properties. Second was interest rates, including rate lock term and amortization schedule banks offered on land. I spoke to multiple banks throughout the month offering rate locks 5-10 years, 3.75-4.25%, and 20-25 year amortization schedules. These two things are keeping our market hot for the time being with many buyers looking for land and have created a shortage of inventory.
Land Prices in the month of July, 2020 per acre:Wisconsin Tillable $4200 – $8000Wisconsin Timber $3500 – $5000Iowa Tillable $6500 – $9650Iowa Timber $4000 – $8565Minnesota Tillable $5000 – $7500Minnesota Timber $3000 – $4250
We are scheduling auctions for 3rd and 4th Quarter currently with current auctions scheduled for Sept 23rd, Oct 7th, and Oct 28th. If you know someone looking to sell a property at a listing or auction now is a great time to prepare the photos and videos. Call one of our agents today for a free proposal to find your properties High Point.
High Point is now offering licensed Certified General Appraisals. If you need an appraisal for a loan or for estate purposes, we would be happy to help. 

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What is Land Selling for This Month

What is land worth? What is Land Selling for? Is Covid affecting Farmland prices? What are land interest rates? These are all questions we were covered with over the month of June 2020. The quick answer is the market is very stable and slow to respond… it’s land.
The reality to each question is a longer conversation that is a little different for each market we do business in Iowa, Wisconsin and Minnesota as well as the different categories of tillable land, hunting land, buildable land, etc; however we will give you a nice update from above as we had our biggest 2nd quarter ever selling nearly 40 tracts. 
What is Land Worth? What is land worth and what is it selling (below) for are a couple different questions. For the most part land with a rate of return in our service area is selling for 1.5-5% annual net ROI. Land has many different values to many different people. A simple example of this is a family that bought a farm this quarter to hunt and fish with their families and build great memories, compared to another who was an out of state investor that did not ever view the farm and commented our videos and photos were so high quality why would he waste the weekend traveling. This is a simple but very real difference in the land market and what land is worth to different types of buyers. This is big reason why our marketing efforts are so diverse on properties to appeal to many different types of buyers to achieve a properties High Point value. 
What is land Selling for? Land in our service area is selling at these ranges CREP or wetland $800-$1500/ac, Timber ground $3250-$6000 and Tillable land $4000-$12,000. The ranges are all based on quality, neighborhood, exposure, marketing, water, buildable, access, etc. That is why it is so important to talk to a professional in our organization. To help this nail down a little more, I will use a CPI or CSR2 ratio. Land in Minnesota is in the $75-$85/CPI point and in Iowa $95-$115/CSR2 point. If you would like an exact number, we would be happy to have a conversation with one of our agents directly. 
Is Covid affecting Farmland prices? We would respond a big YES. If anything they have affected them positivity. Government money pouring into the hands of buyers, people on unemployment wanting to spend more time outdoors, people wanting to be outside of the city, and people not liking the volatility of that stock market have our buyer lists longer than ever. 
What are land interest rates? Interest rates are not only the lowest we have ever seen them but the banks motivation to lend and the rate lock terms and amortization schedules are “unprecedented” From an interest rate perspective for those who require a loan to purchase land there has never been a better time. We are seeing rates in the 3.25-4.25% range on land purchases on a regular basis across many lenders. 
We hope this land market finds you well. Keep us in mind is you hear of anyone looking to buyer or sell or needing a land appraisal. 
We are here to help.

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What is Land Selling for This Month

Land prices for the month of May 2020 were stable to slightly lower overall across our entire Midwest service area. We saw many “investor” classified land buyers make offers and express interest in the land and rural real estate market. We had our largest closing month ever finalizing many land auction sales from April as well as scheduled new auctions and brought new listings to the market that had unprecedented high interest levels as soon as they hit the market.

The stable levels of land prices came on the highly desirable tracts of hunting, recreational, tillable, and rural homes. Properties with good timber assets, good soil quality and tile situations or on blacktop with well-kept building sites were among the highest internet’s levels. The high per tillable acre across all states was Iowa at $9650/acre followed by a Wisconsin 200 acre tillable farm sold at auction for $8000/acre.

The properties that traded at lower prices were those of lesser quality in one or more categories. Tile, water issues, poor hunting neighborhood, access to utilities, public roads, cities or local amenities were factors to these tracts as well as lower soil quality, cut up smaller fields, and work needing to be completed on the properties made for negative impacts on the price of those properties.

Overall, the land market has remained stable with good equity in land as well as many new buyers entering the market and looking at property as approved buyers. If you or someone you know is interested in purchasing land or selling in the future, this is a great time to do or plan for either for many reasons; rates have remained low and land as an investment looks very positive.

Contact one of our agents today or check out our website for more available properties in your area.

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What is Land Selling for This Month

Farmland prices for the month of April 2020 were relatively stable overall. We had 6 auctions consisting of over 1,800 acres in Wisconsin, Iowa, and Minnesota as well as many listed properties and off-market transactions take place.

The market showed us a few things to note this month as far as the current market pricing/situation update. First, high-quality ground was overall hardly affected. The top end outliers did not happen, however the average stayed right about the same. Medium quality land was down 5-10% and the low-quality ground is what brought the group average down the most. Land that was either very light, wet or flooding, and poor quality overall from a hunting or tillable perspective had less interest and in turn achieved less of a price. Second, we saw more transactions than we originally thought we would. Buyers with 1031 exchanges were higher than usual, stock market exits were higher and buyers with low interest rate lock intentions were all a positive to the market. Third, we saw more people than ever willing to bid online and 2-3 times the registered bidders for auctions. People believe in land and the stability it offers more than ever and are seeing it as a safe haven that can be enjoyed on top of the financial benefits. Last, we had an increase in sign and directional calls from buyers driving around looking for land instead of on the Internet. There was an increase in number of rural property showings and land interest overall more than we have seen in the last 4 months.

There are many unfortunate things happening to agriculture currently. However, I was reminded by a man far older and more experienced than myself this week that when interest is affordable, markets are down, and things don’t look so good; there are usually good times, higher rents and new record high prices coming down the road. If you can lock in a good deal today you might be happy you did a few years from now.

If you or someone you know is interested in land as an investment, a nice place to get out of town to spend time with friends and family, or a home in the country give one of our agents a call today. We have a large list of current listings with motivated sellers.

Enjoy this wonderful “normal so far” spring weather!

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What is Land Selling for This Month

Farm Land prices today and what I see for the future.

Over the last 30 days we again had to adjust. There will always be new obstacles that need to be overcome. Here’s what I have noticed about land owners, buyers, sellers, bankers, accountants, farmers, and rural land investors involved in agriculture over the last 2 weeks.

To be involved in agricultural land or become involved in one way or another people seem to have one common. That common is the general belief that we will always have to grow, extract or place things on or in land. Whether it be using the water or wind to generate power, growing crops for human or animal consumption, or extracting sand or minerals for concrete; it all comes back to the LAND.

The thing I have noticed about the people is we have become very realistic and resilient to fear and media negativity. Sure, we may have to change the way we do things for a little bit but we all deal with disease, weather, market changes, and problems every day and this is just another adjustment we are having to deal with and have remained very calm and stable as a group.

Land prices have remained very stable with an increase in buyer interest in the stable land investment category. In the last 5 days I have watched every sale I can putting a price on what it should sell in advance of the sale, only to watch it hit that number or even go higher. The last 5 auctions or listings have ranged from $8,600/ac, $4,717/ac, $7,625/ac $8,125/ac $6,240/ac. Tillable or recreational, good or bad, you name it; it has all stayed on course.

What I see for the future is an increase in people being interested in land as an investment and here’s why. The simple saying of you cannot make more of it keeps replaying in my mind. You can make more offices, apartments, stocks, bonds, companies, or houses and they have been overbuilt and are about to struggle if they already are not. Those assets have all been created at extreme rates with favorable times for the last decade. Land in our service area has experienced the opposite since about 2012 coming off a boom from 2008-2012. We have had high operating interest rates, low commodity prices, low milk prices, trade war issues, and major weather challenges, just to name a few. We have had a slip in land prices and rental rates over the last 5-10 years and are now sitting at good 3-5% ROI’s on land with cheaper interest rates than ever. Here’s my positive outlook “what if”. What if we have another drought following this wet cycle, what if we have an advancement in land like we do in every 10-20 year cycle from the past, what if we have something positive happen in agriculture with all the technology and efficiencies we have implemented that has to be used by the masses due to it being one of the most “essential” industries available. We rented farms this year for less than half of what they rented for 8 years ago. What if you could buy a farm today, lock in low rates and rent it for double or sell the crop produced off it for double in the future?

High Point has had a huge increase in buyers looking for land, registering for online auctions, and watching our educational videos abut land investing in the last 14 days. We think there are bright days ahead for agriculture and land in the future. Call one of our agents to talk land today.

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What is Land Selling for This Month

What is Land selling for in Iowa, Wisconsin, or Minnesota? Land prices in the month of February 2020 were similar to January; trending up over last year with many new buyers coming into the market and many new listings, land rental availabilities, rural homes and land auctions hitting the market. We also have seen many new buyers entering the market exiting the stock market.

Land prices in the tillable sector ranged from $4,500-$11,000 per acre across our entire service area. This is a large range and was primarily based on quality, tile, drainage, buildable sites, access and location to grain markets. In South Eastern Minnesota Land Prices were in a tighter range from $5,000-$7,500. We do have a very high quality tillable tract coming on the market in MN with a wind rights payment over $8,000/acre. In Iowa land prices were easily calculated based on the CSR2 rating ranging from $90-$120/CSR2 Point. In Wisconsin tillable land prices ranged from $4,500-$12,250/acre increasing in price the farther south the farm was located. We have nearly 1,500 acres scheduled for public auction in three states this April that will give us a very good value range of all qualities in the public auction market. Farmland Leases ranged from $175-$300/acre depending on term and quality of the land.

Hunting land prices had an overall increase as well with timber quality, buildable sites, hunting neighborhood, income opportunities, and creek access leading the top interests. Hunting land leases have a similar quality to tillable land, all based on how the buyer wants to utilize the property. Hunting land with good top access, buildable sites for a home or cabin, and private trout fishing leads the value scale at an average of $4,000-$5,000+ per acre across most of our service area. Hunting leases for deer and turkey ranged from $10-$50+ per acre.

High Point is expanding our service area and has many land agent positions available on our careers tab of our website. We have been very blessed by wonderful clients and hardworking staff. If you know someone who is a great salesperson looking for an exciting career, we would be happy to talk to them. Thank you for a great start to first quarter and keep our agents in mind for helping find you a quality rental tenant or in any land buying or selling situation.

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