Iowa Farmland Values: Washington and Johnson County

Published on Jan 27, 2021 by Riley Sieren

Peoples Company is focused on being resourceful and influential in the agricultural land business. One example is by providing information to access long-term economic viability and investment opportunities. Continuing with the Iowa Farmland Values blog series, we will be highlighting information about land values in Washington and Johnson County, Iowa.
 

2020 Washington County Land Statistics:

Total Acres: 365,200                                                       
Average CSR2: 68                                                           
Farmland Value: $8,386/Acre                                          
CSR2 Price Per Point Average: $123                             
Average Cash Rent: $235                                               
2015-2019 Average Corn Yield: 203 Bu                                 
2015-2019 Average Soybean Yield: 59 Bu    

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


Recent Washington County Land Listings:

    


The Washington County land market varies from each corner of the county. There are many areas and pockets that can yield much higher results than others in terms of land values and cash rents. Washington County is known to be one of the most prominent hog-producing counties; whether you’re overlooking the Skunk or English River, you will find some of the most fertile soil and Whitetail hunting within the 365,200 acres of Washington County, Iowa.

Of the 365,200 total acres in Washington County, the average Corn Suitability Rating 2 (CSR2) within the county is 68, with an average 2020 farmland value of $8,386 per acre. To determine the CSR2 price per point average, divide the average farmland value ($8,386) by the Washington County CSR2 average (68), which equals $123 per CSR2 point.

The average 2020 cash rent per tillable acre across Washington County is $235. The 2015-2019 average corn and soybean yield was 203 and 59 bushels 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 $1.16 for corn and $3.98 for soybeans.

The capitalization rate, or also commonly referred to as "cap rate," is the return rate 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, depending on demand, available inventory within the area, and specific type of property. The cap rate for Washington County farmland is around 2.8 percent, or an expected return on investment around three percent.

  

2020 Johnson County Land Statistics:

Total Acres: 398,900
Average CSR2: 65
Farmland Value: $8,864/Acre
CSR2 Price Per Point Average: $136
Average Cash Rent: $209
2015-2019 Average Corn Yield: 197 Bu
2015-2019 Average Soybean Yield: 57 Bu 

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


Of the 398,900 total acres in Johnson County, the average Corn Suitability Rating 2 (CSR2) within the county is 65, with an average 2020 farmland value of $8,864 per acre. To determine the CSR2 price per point average, divide the average farmland value ($8,864) by the Johnson County CSR2 average (65), which equals $136 per CSR2 point.

The average 2020 cash rent per tillable acre across Johnson County is $209. The 2015-2019 average corn and soybean yield was 197 and 57 bushels 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 $1.06 for corn and $3.67 for soybeans. The cap rate for Johnson County farmland is around 2.3 percent.

Contact Auctioneer and Agent Riley Sieren (319.591.0111Riley@PeoplesCompany.com) for more Washington and Johnson County land information or for a FREE VALUATION of your property.