$17,300 per acre in Northwest Iowa

Here's another strong sale from that strong northwest Iowa area. This auction occurred Nov. 13 and involved a 160-acre farm located two miles south of Hospers in Sioux County. The farm had 154 tillable acres and a six-acre farmstead.

Big selling factor: CSR2 99.15! Considering that 100 is perfect, this is a WOW! The county-average cropland CSR2 is 85.5.

You may recall that 80 acres of Sioux County cropland sold for $21,900 per acre on Oct. 25, 2012. The CSR2 on that farm was 84.1. The farm was located near Boyden about 10 to 15 miles northwest of the Hospers farm.

So, this results in a price decline of 21% from the high 2012 high for that county. But consider this: Net farm income in 2012 was $93.6 billion followed by a 32% upburst to $123.3 billion in 2013. Bidders at the 2012 Boyden auction obviously leaned into the extremely positive income forecast for 2013. Currently, net farm income is expected total $about $56 billion for 2015. That's a decline of about 40% from 2012 and down 38% from 2014. And, the forecast for 2016's net farm income is severely restrained as well. With this perspective, only a 21% decline in the price of farmland is rather remarkable.

Handling the auction was Jim Klein, Klein Realty & Auction, Remsen, Iowa, 712-786-2870.