Iowa Farmland Values: Jasper and Warren County

Published on Nov 6, 2020 by Doug Bear


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

1 2019 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD)
2 Iowa State University Extension and Outreach File C2-10 in Ames, Iowa


Successful Sales in Jasper County:

Of the 468,700 total acres in Jasper County, the average Corn Suitability Rating 2 (CSR2) for the 378,175 acres of farmland within the county is 68.5 with an average 2019 farmland value of $7,797 per acre, which is a 4.8% increase from $7,438 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($7,797) by the Jasper County CSR2 average (68.5), which equals $113.82 per CSR2 point.

The average cash rent per tillable acre across Jasper County is $226 ($200-$250). The 2015-2019 average corn and soybean yield was 209 and 59 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 $1.08 for corn and $3.83 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 Jasper County farmland is around 2.90%, or an expected return on an investment less than three percent.

1 2019 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD)
2 Iowa State University Extension and Outreach File C2-10 in Ames, Iowa


Successful Sales in Warren County:

Of the 366,900 total acres in Warren County, the average Corn Suitability Rating 2 (CSR2) for the 247,153 acres of farmland within the county is 57.3 with an average 2019 farmland value of $6,769 per acre, which is a 3.2% increase from $6,560 since 2018. To determine the CSR2 price per point average, divide the average farmland value ($6,769) by the Warren County CSR2 average (57.3), which equals $118.13 per CSR2 point.

The average cash rent per tillable acre across Warren County is $187 ($159-$221). The 2015-2019 average corn and soybean yield was 175 and 52 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 $3.60 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 Warren County farmland is around 2.76% or an expected return on investment around two and three-quarters percent.

To get in contact with someone about your Jasper County or Warren County farm in Iowa, please call Matt Adams (515.423.9235; Matt@PeoplesCompany.com) or Doug Bear (515.745.3192; Doug.Bear@PeoplesCompany.com).

DOWNLOAD JASPER COUNTY HANDOUT
DOWNLOAD WARREN COUNTY HANDOUT