The month of April was busy in the land business. With auctions getting high prices, quality farms becoming available, timber markets headed north, interest rates, and 1031 exchanges were all hot topics for the month. The market is strong on both sides of the fence with sellers looking to take advantage of good prices and buyer interest and financing availability also sitting strong. Banks seem to be comfortable with the current market and are looking to lend rurally.
Exchange opportunities are being filled with buyers from selling other real estate or stock gains and investing in land and having us manage the property. Interest rates are in the 4.35-4.5 rates on ground and requiring 20-25% for the most part (Do not forget about beginning farmer programs at the bank and FSA office).
Quality ground in all categories is moving. Tillable in Minnesota is in the $6000-$8000 per acre range regularly and hunting land is in the $3000-$4000/acre range regularly. Iowa has even more interest and higher prices. One thing to mention is soft wood timber is increasing in value and hardwoods always seems to follow. Also whiskey barrel production and trendy interior white oak is becoming very sought after so white oak is up and headed higher in our opinion.
We are now brokered in the state of Wisconsin and will be adding that to our future reports. If you would like anyone you know added to the report for their business or personal investment interest, please email their email address to Lucas@hpraa.com.