First Notice Club
January 23, 2014
Land Prices – The reports are now starting to show declining land values. There was one out just recently by Farm Credit saying that they are showing a drop of 2.8% over the last 6 months in Iowa. This was expected with the corn prices staying in the low $4/bu range.  I think we are seeing a lot of variability in auction results from no-sales to some real good sales to average to mediocre.  We think there is going to be more scrutiny on quality and upkeep where land with better fertility, tiling and production history will be the higher land sales.  Lots of land sold with no data and buyers will exercise caution on the conservative side without assurances that all is well.
Rents – We have had lots of negotiation this winter but in general most owners and tenants have been able to work it out. Most owners understand that when commodity prices fall then so do rents. We are doing a lot of flex leases with reasonable base rents and an upside for the owner if all goes well.  With good record keeping these types of leases are more verifiable than in the past and tenants are not resistant to provide the data.
New  Listings:
      Story County – 76.62 acres with 73 tillable acres located SW of Kelley and NW of Huxley.  The farm is an 85.2 CSR and the lease is open for 2014.  Not many come along like this one. Priced to sell at $10,900/acre. 
Current Listing:
      Warren County – 80 acres - North of Indianola on the south side of G24 one-half mile west of Hwy 65. 68.7 acres in CRP at 262.32/acre for another 12 years.  This is a great example of a perfect farm to go into a self-directed IRA. The location will only get better as Des Moines expands and the income is locked in. Hunting and recreation use also with the Middle River along the south line. To see an overview of the farm follow the link

      Story County - 175.76 acresLocated south of Ames.  57.4 tillable acres with an 86.6 CSR.  Also 39.1 acres of CRP @$180/acre and 70 acres of pasture.  Excellent diversified farm for farm operator and recreational investor with good hunting, fishing and income return. Lies on the east side of Skunk River.  Lease is open for 2014.  Priced at $4,500/acre

Clarke County - 212 acresLocated west of Lakeside Casino. 138 acres of CRP plus new, large 23 acres wetlands/pond, 2 newer 1-3 acre ponds plus hay land.  Excellent recreational property for fishing and deer, pheasant, turkey and waterfowl hunting with good building sites. Good location to I-35 and Des Moines.  Approx $200,000 in pond and wetlands investment the last 3 years.  $3,500/acre  For complete details follow the link below

Mark Gannon 
Gannon Real Estate & Consulting/US Farm Lease 
56722 – 241st Street, Ames, Iowa 50010, 515-291-5942

56722 241st Street | Ames, IA 50010 US

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