Iowa Farmland Values: Greene County and Guthrie County

Published on Oct 7, 2020 by Doug Bear


Peoples Company is focused on being resourceful and influential in the global land business. One example is by providing information to access long-term economic viability and investment opportunities. We will be highlighting some county average farmland characteristics and production costs from the most recent 2019 Land Value Survey and 2020 Cash Rental Rate Survey from Iowa State University. If you are interested in acquiring similar information for another state or county, 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 Greene County, Iowa:

Of the 366,300 total acres in Greene County, the average Corn Suitability Rating 2 (CSR2) for the 351,286 acres of farmland within the county is 78.3 with an average 2019 farmland value of $8,008 per acre. This is a 4.0% increase from $7,696 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($8,008) by the Greene County CSR2 average (78.3), which equals $102.27 per CSR2 point.

The average cash rent per tillable acre across Greene County is $239 ($210-$262). The 2015-2019 average corn and soybean yields were 200 and 57 bushels per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.20 for corn and $4.19 for soybeans. With current corn and soybeans futures projected at $3.50 and $9.50, one may expect anywhere from 35-45% of expenses are associated with cash rent.

The capitalization rate, or also commonly referred to as cap rate, is the rate of economic 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 Greene County, Iowa farmland is around 2.98%, or an expected return on investment just shy of three 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 Guthrie County, Iowa:

Of the 379,900 total acres in Guthrie County, the average Corn Suitability Rating 2 (CSR2) for the 332,211 acres of farmland within the county is 61.4 with an average 2019 farmland value of $6,996 per acre. This is a 3.7% increase from $6,748 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($6,996) by the Guthrie County CSR2 average (61.4), which equals $113.94 per CSR2 point.

The average cash rent per tillable acre across Guthrie County is $206 ($176-$236). The 2015-2019 average corn and soybean yield was 193 and 56 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.07 for corn and $3.68 for soybeans. With current corn and soybeans futures projected at $3.50 and $9.50, one may expect anywhere from 35-45% of expenses are associated with cash rent.

The cap rate for Guthrie County, Iowa farmland is around 2.94%, or an expected return on investment just shy of three percent.
 



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


Download PDF Handout: Greene County
Download PDF Handout: Guthrie County