Eastern Iowa Farmer Fall 2021

a big year
beans around $8 per bushel,” said Chuck
Schwager, owner of East Iowa Real Estate
in Maquoketa.
The derecho in August 2020 damaged
thousands of acres of corn and soybeans,
and soon after China started buying large
amounts of both those crops, which reduced
the supply of stored grain, he noted.
“Into the fall of 2020 we started to
see commodity prices go up, which
pushed land values up,” Schwager said.
The average price for a bushel of corn
in Iowa at the end of August was $6.54
and for soybeans $13.24, that compares
with $2.99 and $8.65 respectively for
August 2020, according to the Iowa
Department of Agriculture and Land
Stewardship.
Government Market Facilitation Program
(MFP) and Coronavirus Food Assistance
Program (CFAP) payments gave
farmers a boost, and there is more cash on
hand, Schwager noted in August.
“There is much competition out there
from buyers looking to purchase farmland,”
he said.
Yegge, McNeil and Schwager all noted
Wendong Zhang,
Iowa State University
assistant professor
in economics and
extension economist
that while the
amount of land on
the market is increasing,
the supply
of quality farm
ground available
in Eastern Iowa is
still tight.
That limited
availability has an
impact.
“That plays a
very big role,” said
Alejandro Plastina,
an assistant professor
in economics
and extension
economist at Iowa State University
“Farmland is a thin market. There’s
such a small supply at any given time.
That pushes prices higher,” he said.
Going, going, gone
As Chambers, the auctioneer at the
Peoples Company July auctions, encouraged
people to bid, he emphasized the
fleeting opportunities to buy good quality
farm ground.
He noted the Dolan acres hadn’t been
on the market since the 1980s.
“It’s likely to be another 60 to 75 years
before these come for auction again,” he
told the crowd. “We’re here to sell a farm.
You’re here to buy a farm to pass on to
your next generation. Don’t be a member
of the ‘wish I would’ve club.’”
Much of the land getting sold recently
around the state is being sold at auction,
Schwager said.
“The auction method is the best way to
sell good quality farmland when the supply
is low, and buyers have the resources
and cash on hand to make the purchase.
With limited land on the market, buyers
are aggressive when land becomes available
in their neighborhood,” he said.
Farmland auctions are the primary
mode of land sales in four of the six crop
reporting districts in the state, Zhang said,
noting that the higher offered prices and
possible tax policy changes might induce
more land supply and more auctions.
And, he anticipates, they will continue
to draw both crowds and motivated
bidders. n
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eifarmer.com Fall 2021 | Eastern Iowa Farmer 47
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9/15/21 10:23 am