Iowa Farmland Values: Adair and Madison County

Published on Oct 27, 2020 by Doug Bear


Continuing with the Iowa Farmland Values blog series, we will now be highlighting average farmland characteristics and production costs in Adair and Madison County. If you are interested in acquiring similar information, contact your local extension office or land grant institution within your state.

*Data compiled from 2019 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and Iowa State University Extension and Outreach File C2-10 in Ames, Iowa. 


Successful Sales in Adair County, Iowa:

*Non-tillable acres were assessed a nominal price per acre ($3,000) to aid in the determination of approximate $/CSR2. 

Of the 364,600 total acres in Adair County, the average Corn Suitability Rating 2 (CSR2) for the 334,850 acres of farmland within the county is 64.0 with an average 2019 farmland value of $5,661 per acre, which is a 2.4% increase from $5,527 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($5,661) by the Adair County CSR2 average (64.0), which equals $88.45 per CSR2 point.

The average cash rent per tillable acre across Adair County is $186 ($157-$218). The 2015-2019 average corn and soybean yield was 174 and 54 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by the average crop yield expected, which is $1.07 for corn and $3.44 for soybeans. Since beginning this blog series during the middle of September 2020, commodity markets have risen an additional 10-20% and corn and soybean futures are currently over $4.00 and $10.50 per bushel, respectively. One may still expect to spend approximately one-third of the per bushel revenue on cash rents.

The capitalization rate, or also commonly referred to as cap rate, is the rate of return on a real estate property based on the income that the property is expected to generate for the landowner. The cap rate can help evaluate and compare the risk of one property or market to another, where it depends on demand, available inventory within the area, and specific type of property. The cap rate for Adair County, Iowa, farmland is around 3.29%, or an expected return on investment slightly over three and a quarter percent.

*Data compiled from 2019 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and Iowa State University Extension and Outreach File C2-10 in Ames, Iowa.


Successful Sales in Madison County, Iowa:

*Non-tillable acres were assessed a nominal price per acre ($3,000) to aid in the determination of approximate $/CSR2.

Of the 360,400 total acres in Madison County, the average Corn Suitability Rating 2 (CSR2) for the 271,017 acres of farmland within the county is 60.8 with an average 2019 farmland value of $6,226 per acre, which is a 2.6% increase from $6,067 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($6,226) by the Madison County CSR2 average (60.8), which equals $102.40 per CSR2 point.

The average cash rent per tillable acre across Madison County is $180 ($142-$217). The 2015-2019 average corn and soybean yield was 174 and 53 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by the average crop yield expected, which is $1.03 for corn and $3.40 for soybeans. Since beginning this blog series during the middle of September 2020, commodity markets have risen an additional 10-20% and corn and soybean futures are currently over $4.00 and $10.50 per bushel, respectively. One may still expect to spend approximately one-third of the per bushel revenue on cash rents.

The cap rate for Madison County, Iowa, farmland is around 2.89% or an expected return on investment of around three percent.

To get in contact with someone about your Adair County or Madison County farm in Iowa, please call Matt Adams (515.423.9235; matt@peoplescompany.com) or Doug Bear (515.745.3192; doug.bear@peoplescompany.com).

*Tillable acres for all the counties are found HERE.