Interest rates haven’t curbed land values — so far

May 29, 2023

Land Values: Here is a look at recent land sales in Nebraska, Kansas and Missouri.

June 9, 2023

by Ron Stock

Commodity prices are lower, and combined with higher interest rates, it could mean lower profits for producers in 2023. According to BigIron Realty, these impacts haven't curtailed land values so far.

Based in Columbus, Neb., BigIron is a licensed real estate broker in eight states and compiles the reports for this column. However, not all sales are handled by BigIron each month. For more information, contact BigIron at 800-887-8625.

The following are several of the most recent sales, this month all handled by BigIron.

Morrill County. A total of 292.03 acres sold at online auction for $1,241,127.50. This productive farm is irrigated with a 2008, 15-tower Zimmatic pivot with drop nozzles. The Farmers Irrigation District provides 276 acres of surface water annually at $32 per acre. There are about 242 acres under pivot. A 60-hp electric motor provides 1,350 gallons per minute to the pivot.

In the southwest corner of the farm is dry land that could be irrigated with the remaining surface water acres. Soil inventories under the pivot are 78.5% Class 2, consisting of Tripp, Mitchell, Otero and Bridget soils, and sandy loams. A building site has a 75-by-39-foot Quonset-style shed with a cement floor. The adjacent shed is 28-by-47-foot with a cement floor.

There is a submersible pump in place at the building site for livestock. There are two 10,787-plus-bushel grain bins with floors and fans. The farm is under lease for the 2023 growing season. The buyer is the new landlord at closing and receives 100% of the lease terms for 2023. The farm is also close to local markets, including an ethanol plant, and it has excellent access on well-maintained roads and a blacktop road on the southern border of the property.

Cuming County. A total of 20 acres sold for $322,000. This property is prime, productive, dryland crop ground, but the possibilities are endless for this tract. It has excellent access and is located on the 20A Spur just north of Beemer, Neb., between Highway 275 and Highway 51, with possession for 2023.

Cuming County. A total of 40 acres sold for $602,000. This farm is a productive dryland property in Cuming County with possession for 2023.

Stevens County. A total of 278.33 acres sold at online auction for $878,131.25. The north pivot on this half section has 127.69 acres planted to 2023 irrigated wheat. The south pivot has 80 acres, and the tenant planted to irrigated corn. The buyer receives a one-third crop share of both crops and pays one-third of the fertilizer, herbicide and pesticides. The buyer succeeds to the seller's crop insurance coverage and pays the premium. If desired, the tenant was willing to sell the engine, gearhead and two pivots to the buyer.

The north pivot is a 1985 Valley seven-tower system. The south pivot is a 1992 Valley six-tower system. The engine is a 170-hp Cummings running on natural gas. The irrigation well pumps 650 gallons per minute throughout the growing season.

There are 48.77 acres of CRP in the middle and south corners, paying $43.49 per acre ($2,121.00 per year). This CRP contract expires on Sept. 30. There are 19.45 acres of non-CRP grass in the north corners and around the irrigation well. There are 2.42 acres of other land uses, such as trails and the energy company's saltwater storage tank enclosure.

Benton County. A total of 116.5 acres sold at online auction for $627,150 in two tracts. Tract 1 has 50 acres of pastureland and is just minutes from Cole Camp, Mo., located off Highway A. This ground has been hayed in the past and makes a great addition to a cattle operation. There is electricity and water on the property. Tract 2 has 63 acres of farm ground and can be tillable or pasture ground. It was most recently cut for hay and pasture. It has access off a blacktop road and is just minutes from Cole Camp, Mo., and Highway 65.

Stock is co-founder of BigIron Auctions and Realty with his brother, Mark.