Inventory, Life Estates, & Market
Inventory For Sale
We just listed an 80-acre parcel located in SW Franklin County that is nearly all tillable, pattern tiled, and with an average corn yield the last 3 years of 213/acre. This great producer is priced at $7100/acre. It's a great add-on unit. We sold the 55 acres located in the Greenbelt area south of Ackley. Great combination farm. Also, we just listed 160 acres that will go to auction in January, and is located just west of the Flying J Truck Stop in Williams. 77.5 CSR, rented for 2018, but good cash rent. Watch for our ads on this one.
Selling Life Estates
There was an auction that occurred last week in western Iowa that involved a life estate. The lady was 98 years old and had life estate in a 175+ acre farm with improvements. If you bought this life estate, you were not buying any real estate, but the right to get her income off of the farm until she dies. Novel idea. I first read the sale flyer and thought the whole thing was convoluted, but it worked out ok. A relative bought it for $47,000 with potential income of $40,000+. Schaben Real Estate handled that auction.
The land market is unbelievably strong. 80 Acres in Madison County with a CSR of 87 and 73 crop acres brought $11,600! Farms in northwest Iowa have been selling in the teens. For a period of time this summer, the strength in the market was because of lack of supply. I feel there is more dirt on the market now, but the extra bushels on yields have given buyers a renewed sense of optimism.
MAKE IT A GREAT WEEK!