The Iowa Chapter of REALTORS® Land Institute announced the results of its March 2016 Land Trends and Values Survey. Survey participants, who are specialists in farmland and are asked for their opinions about the current status of the Iowa farmland market, were also asked to estimate average farmland values as of March 1, 2016. 

These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information.

The result of this survey shows a statewide decrease of 5.0 percent for tillable cropland values from September 2015 to March 2016 period. Combining this decrease with the 3.7 percent decrease reported in September 2015 indicates a statewide average decrease of 8.7 percent for the year from March 1, 2015 to March 1, 2016.

The nine Iowa crop reporting districts all showed a decrease in value. The districts varied from a 2.4 percent decrease in EC district to a 6.2 percent decrease in NW and SC districts since September 2015. Factors contributing to current farmland values include: lower commodity prices, limited amount of land on market, and high input costs. Other factors include: lack of stable alternative investments, cash on hand, and increasing interest rates.

For more information with regards to the Iowa REALTORS® Land Institute farmland value survey, which has been conducted in March and September since 1978, go to www.rlifarmandranch.com.