A 35.51-acre tract of farmland in northwest Iowa sold for $1.13 million on Dec. 1. That’s $32,000 per acre, setting a new state record. This sale in Sioux County broke the previous high of $30,000 per acre for a 73.19-acre parcel at a 2022 auction, also in Sioux County.
Jim Rothermich, vice president of Iowa Appraisal, keeps track of land sales in Iowa. He was surprised to see this record sale, considering the low prices for corn and soybeans. A neighboring landowner submitted the high bid and plans to raise corn and beans on the parcel northwest of Orange City. The auction was conducted by Zomer Realty & Auction Co.
Why it’s selling
High-quality ground is still selling well, and farmers who want high-quality ground are competing vigorously for that land. Also, local investors are competing with farmers to buy some of these tracts, Rothermich said.
The strong livestock industry in Sioux County adds to the demand as hog and cattle farmers search for more land to spread manure.
There have been some other recent robust sales of farmland in northwest Iowa. On Nov. 24, the winning bidder paid $22,500 per acre for 100 acres west of Sioux Center. The same day, a 30-acre tract in neighboring Lyon County northwest of Doon sold for $22,100 per acre.
Low commodity price impact
The decline in commodity prices affects farmers differently, Rothermich noted. With strong prices, 2022 was the best farm-income year farmers have ever had. Some farmers have money saved from the better years.
At the same time, the market for low-quality farmland is showing the effects of 2025’s lower crop prices. There has been an increase in the number of “no sales” in recent months. Thus, low-quality land is definitely being affected.