Uncover the Hidden Gems of Waterloo's Farm Auction
Sellers - A Family Legacy
In Waterloo, a 176-acre century farm changed hands at an auction on Oct. 29. The property was owned by sixteen family members, seven of whom were part of a trust under LaVerne Proctor. She passed away in December 2022, leaving behind this agricultural heritage. The remaining family members decided it was time to sell, marking the end of an era.
The trust and the family's connection to the land showcase the significance of this century farm. It represents not just acres of fertile soil but also the memories and stories of generations.
Buyers - Diverse Plans
The four buyers who acquired the land have distinct plans. Tract 1 buyer aims to build a home on the mostly tillable land with a scenic pond. Sold at $20,000 per acre for a total of $210,000, this tract holds the promise of a new residential development.
Tracts 2 and 3 were purchased by a private Christian school with plans to construct a new building. At $25,581 per acre for a total of about $550,000, this section of the property will serve a different purpose, adding educational value to the area.
Tracts 4 and 5 will continue to be farmed, with a buyer planning to maintain the agricultural operations. Sold at $21,121 per acre for a total of about $1.225 million, these acres will contribute to the local agricultural economy.
Tract 6 was purchased using a USDA Farm Service Agency (FSA) loan by a beginning farmer. Sold at $13,914 per acre for a total of about $1.198 million, this tract will be a new chapter in farming for the buyer.
Economic Analysis - Steady Trends
The sale of this property at about $3.18 million, averaging $18,075 per acre, is significantly higher than the 2024 state-wide average of $8,700 per acre. This indicates the unique value of this particular farm in Waterloo.
Brad and Brenda Chandler predicted the sale price within a few hundred dollars, showing their expertise in the market. Their recent sales in the same area confirm their hunch that farmland sales in the area are holding steady.
The Federal Reserve Bank of Chicago's November 2024 AgLetter also supports this trend. The seventh district, which includes Illinois, Iowa, Indiana, Michigan, and Wisconsin, had no year-over-year change in agricultural land values in the third quarter of 2024. This is the first period without an increase since the fourth quarter of 2019.
Data from the University of Illinois Farm Business Farm Management (FBFM) shows that 2024's average of $8,700 per acre is a 3.3% increase over 2023's average of $8,420. However, the increase has slowed compared to previous years due to factors such as rising interest rates and lower commodity prices.
Brad Zwilling, who compiled the data, explains that farmers' strong financial positions and record high incomes in 2021 and 2022 have supported land purchases. But with higher interest rates and lower returns, the trend is starting to slow.
About the Property - A Rural Gem
The land is located on the edge of Waterloo in Monroe County, directly east of the Waterloo Country Club. The county's plans to redirect a road along the farm's border will transform it into a dead-end public road, adding to the property's uniqueness.
The property is a mix of fertile, tillable cropland, picturesque views, and an older home. With taxes of $4,819.62 in 2023, it offers a balance of agricultural productivity and rural charm.
Each tract has its own characteristics. Tract 1 is mostly tillable with a scenic pond and an approved entry point. Tracts 2 and 3 are also tillable, while Tract 3 includes a farmstead and historic home. Tracts 4 and 5 have road frontage and established access. Tract 6 is mostly tillable with city limits on one side and a redirected road.
All acreage amounts are considered "more or less," adding to the charm and flexibility of this diverse property.
Produced in partnership with American Farmland Owner (AFO). AFO aims to help landowners make informed decisions for their farmland while ensuring the prosperity of American agriculture.