A lot of folks are starting to ask me how the current drought — the worst since 1988 — will affect farmland prices. Will it entice more people to sell? Will cash rent prices drop?
I can’t really answer either of those questions in a meaningful way except to remind people that the drought is a temporary, one-season phenomenon and farmland is a long-term investment. Will the weather vary? Of course it will. Weather changes. Sure, it’s a bad drought. So what? Droughts are part of life. That’s why we hedge our crops and buy crop insurance.
But the long run fundamentals don’t change. The world demand for corn and soybeans isn’t going away. Demand for ethanol isn’t going to drop.
And that means properties like the one described in the press release below still represent a superb opportunity for those who are thinking in terms of the long haul.
Murray Wise Associates to auction farmland in Iowa’s Webster County
A 230-acre farm in Iowa’s Webster County will sell at auction Tuesday, Aug. 21, with Murray Wise Associates LLC managing the sale.
The farm is located approximately 15 miles from Ft. Dodge, at the intersection of Adams Avenue and 170th Street. It will sell in a single tract on Tuesday, Aug. 21, beginning at 10 a.m. at the Best Western-Starlite Village in Ft. Dodge.
“This is highly productive land that will be attractive to investors as well as to local operators who may wish to expand their operations,” said John Kirkpatrick, who manages the Clarion, Iowa operations for Murray Wise Associates. “The Ft. Dodge area has several grain processing facilities, and of course that translates into lower costs and better efficiency in getting the crop to market.”
The land has a weighted corn suitability rating (CSR) of 78.7.
“Investors worldwide have discovered over the past couple of years what many of us have known all along, that farmland offers excellent returns year in and year out, along with the opportunity for appreciation in value. It is noteworthy that even now, three-fourths of the land being sold is going to farmers, who know and best appreciate its true value,” said Kirkpatrick.
Individuals seeking additional information may visit murraywiseassociates.com or contact the company at 800-607-6888.
About Murray Wise Associates LLC
Murray Wise Associates LLC, headquartered in Champaign, Ill., with additional offices in Florida and Iowa, is a leading national agricultural real estate marketing and auction company. The company also manages farmland assets for individual clients in Iowa, Idaho, Kansas, Kentucky, Missouri, Minnesota, Nebraska, North Dakota, Oklahoma, South Dakota and Wisconsin.