Industry Insights Blogs

In the March edition of the Landowner Insights series, Dr. Dave Muth of Peoples Company Capital Markets is joined by Peoples Company land professionals Hunter Norland, Curtis Buono, and George Baird to discuss current market trends.

The appraisal team at Peoples Company was able to track 65 tracts or 7,510 acres sold at public auction in Iowa during February 2025. The average dollar per acre was $12,178, the average dollar per tillable acre was $13,263, and the average dollar per CSR2 was $171.

The appraisal team at Peoples Company was able to track 76 tracts or 6,614 acres sold at public auction in Iowa during January 2025. The average dollar per acre was $11,295, the average dollar per tillable acre was $13,808, and the average dollar per CSR2 was $180.

In the January edition of the Landowner Insights series, Dr. Dave Muth of Peoples Company Capital Markets covers key takeaways from the market over the past year, the regional view of farm incomes for 2025 and potential impacts and uncertainty from policy changes.

Interest in real estate and other alternative or Alt-investments has increased substantially in the past couple of years. Forbes magazine, for example, reported that the share of financial advisors recommending Alts to their clients increased from 25% in 2020 to 55% in 2024 (Fred Hubler, 9/10/2024). Among these, agricultural real estate has stood out because of the understood positive correlation with inflation, low correlation with equity returns, and low risk of capital loss with relatively consistent income.

Peoples Company tracks agricultural auctions across the state of Iowa. From this data, we calculate the average dollar per CSR2 point ($/CSR2) for sales of tracts with greater than 85% tillable land. Additionally, these tracts are largely unimproved or include minimal improvement contribution.

The appraisal team at Peoples Company was able to track 90 tracts or 8,791 acres sold at public auction in Iowa during December 2024. The average dollar per acre was $11,076, the average dollar per tillable acre was $12,329, and the average dollar per CSR2 was $175.

The Section 1031 like-kind exchange is a powerful tool used by business owners, investors and others to transition real property assets into new assets that may more appropriately meet their needs. When exchanges occur near year-end, the following exchange-related issues and planning matters should be kept in mind.

The appraisal team at Peoples Company was able to track 223 tracts or 22,530 acres sold at public auction in Iowa during November 2024. The average dollar per acre was $12,090, the average dollar per tillable acre was $13,949, and the average dollar per CSR2 was $180.

For our next webinar in the Landowner Insights series, Steve Bruere and Hunter Norland join Dr. Dave Muth with Peoples Company Capital Markets.