The average value for an acre of Iowa farmland reached $9,751, an increase of $2,193 per acre. This marks the highest nominal level for Iowa farmland in the history of the survey, although in inflation-adjusted dollars it is still below the 2012 and 2013 figures.
The average value for an acre of Iowa farmland reached $9,751, an increase of $2,193 per acre. This marks the highest nominal level for Iowa farmland in the history of the survey, although in inflation-adjusted dollars it is still below the 2012 and 2013 figures.
The average value for an acre of Iowa farmland reached $9,751, an increase of $2,193 per acre. This marks the highest nominal level for Iowa farmland in the history of the survey, although in inflation-adjusted dollars it is still below the 2012 and 2013 figures.
Map courtesy Iowa State University CARD
The average value for an acre of Iowa farmland reached $9,751, an increase of $2,193 per acre. This marks the highest nominal level for Iowa farmland in the history of the survey, although in inflation-adjusted dollars it is still below the 2012 and 2013 figures.
Farmland values in Iowa shot up 29% in the past year, reaching the highest state-wide average in history, according to Iowa State University’s annual land value survey released Dec. 14.
The average value for an acre of Iowa farmland reached $9,751, an increase of $2,193 per acre. This marks the highest nominal level for Iowa farmland in the history of the survey, although in inflation-adjusted dollars it is still below the 2012 and 2013 figures.
“This is the highest we have ever seen,” says Wendong Zhang, an associate professor of economics at Iowa State University who heads the annual survey.
While this figure is below the inflation-adjusted number for 2012 and 2013, “this is very significant,” Zhang says.
The last time land values in the state surged more than 25% was in 2011, when they jumped by 32.5%. Last year values went up by only 1.7% as the state dealt with the COVID-19 pandemic.
“The sea change probably already started in the latter half of last year,” Zhang says, adding that a similar trend this year can be seen in housing prices.
Most respondents to the annual survey, which measures the change in values from Nov. 1 to Nov. 1, expect prices to continue to climb this next year, although probably not as fast. And Zhang says the downside of higher farmland prices is that many farmers will also see rental rates increase, perhaps as much as 10%. Those farmers are already seeing input costs rise.
Concerns about potential tax changes may have been a contributing factor in this year’s jump, Zhang adds, although it was a minor factor compared to high commodity prices and good crop yields, as well as low interest rates. Some buyers may also be looking at land as a hedge against inflation. The inflation-adjusted average value rose 21%.
Values went up across the state. Every county and every crop reporting district reported large increases.
Northwest Iowa reports the highest average value at $12,164 per acre, while the North Central district reported the largest percentage increase at 34.5% and the largest dollar increase at $2,737 per acre. The South Central district reported the lowest average value at $6,035 per acre and the Southeast district reported the smallest percentage increase at 21.9%.
Statewide, low-quality land now averages $6,397 per acre, an increase of 26%. Medium-quality land now averages $9,071 per acre, an increase of 27.4%. And high-quality land averages $11,834 per acre, an increase of 30.5%.
The Iowa State Land Value Survey is based on reports by agricultural professionals and has been conducted annually since 1941. The Center for Agricultural and Rural Development (CARD) offers a web portal for more information at card.iastate.edu/farmland/.
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