Iowa farmland set a new state auction record on December 1 when a 35.5-acre tract in Sioux County sold for $32,000 per acre. This is the highest auction price ever tracked in the state.

Jim Rothermich of Iowa Appraisal says the sale surpasses the previous $30,000 record set in the same county in 2022. Sioux County routinely posts strong prices due to its concentration of livestock and dairy operations, which rely on nearby acres for manure application and feed production.

The buyer was a local farmer, not an investor. The winning bidder reportedly operates a large dairy heifer replacement business adjacent to the property. Competition from another neighboring farmer drove the price well beyond expectations. While investor pressure wasn’t confirmed in this sale, Rothermich notes that across Iowa, investors with local ties continue to influence high-quality land prices by forcing farmers to bid aggressively.

Although no other Iowa sales have topped $30,000 this year, multiple auctions have exceeded $20,000 per acre. Strong prices are appearing in surrounding states.

However, the market is increasingly split. Premium land continues to sell exceptionally well, while lower-quality farms are seeing more no-sales due to economic strain and a diminished buyer pool. Rothermich expects the next six months to remain stable, supported by lower auction volume, adequate yields and grain prices that are higher than last year.

Read more about the record farmland sale in Iowa and farmland value trends here.