Continuing with the 2022 Iowa Farmland Values blog series, we will use the 2021 Farmland Value Survey to highlight average farmland characteristics and production costs in and across Carroll, Crawford, Shelby, and Audubon Counties. If you are interested in acquiring similar information, contact your local extension office or land grant institution within your state.

Data compiled from *2021 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 CARROLL COUNTY, IOWA:

Of the 364,900 total acres in Carroll County, the average Corn Suitability Rating 2 (CSR2) for the 348,944 acres of farmland within the county is 76.5 with an average 2021 farmland value of $11,394 per acre, which is a 29% increase from $8,834 since 2020. To determine the CSR2 price perpoint average, divide the average farmland value ($11,394) by the Carroll County CSR2 average (76.5), which equals $148.94 per CSR2 point.

Average cash rent per tillable acre across Carroll County is $272 ($231-$312). The 2017-2021 average corn and soybean yield was 202 and 59 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 $1.35 for corn and $4.61 for soybeans. Current commodity markets for cash corn and soybean prices are around $6.25 and $14.25 per bushel, respectively.

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 Carroll County, Iowa farmland is around 2.39%, or an expected return on investment of just shy of two and one-half percent.

Data compiled from *2021 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 CRAWFORD COUNTY, IOWA:

Of the 457,200 total acres in Crawford County, the average Corn Suitability Rating 2 (CSR2) for the 439,773 acres of farmland within the county is 68.6 with an average 2021 farmland value of $10,835 per acre, which is a 31.3% increase from $8,250 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,835) by the Crawford County CSR2 average (68.6), which equals $157.94 per CSR2 point.

Average cash rent per tillable acre across Crawford County is $293 ($249-$348). The 2017-2021 average corn and soybean yield was 214 and 60 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 $1.37 for corn and $4.88 for soybeans. Current commodity markets for cash corn and soybean prices are around $6.25 and $14.25 per bushel, respectively.

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 Crawford County, Iowa farmland is around 2.70%, or an expected return on investment of just shy of two and three-quarters percent.

Data compiled from *2021 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 SHELBY COUNTY, IOWA:

Of the 378,300 total acres in Shelby County, the average Corn Suitability Rating 2 (CSR2) for the 370,551 acres of farmland within the county is 69.6 with an average 2021 farmland value of $10,237 per acre, which is a 30% increase from $7,789 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,237) by the Shelby County CSR2 average (69.6), which equals $147.08 per CSR2 point.

Average cash rent per tillable acre across Shelby County is $276 ($241-$313). The 2017-2021 average corn and soybean yield was 201 and 57 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 $1.37 for corn and $4.84 for soybeans. Current commodity markets for cash corn and soybean prices are around $6.25 and $14.25 per bushel, respectively.

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 Shelby County, Iowa farmland is around 2.70%, or an expected return on investment of just shy of two and three-quarters percent.

Data compiled from *2021 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 AUDUBON COUNTY, IOWA:

Of the 284,400 total acres in Audubon County, the average Corn Suitability Rating 2 (CSR2) for the 275,557 acres of farmland within the county is 69.3 with an average 2021 farmland value of $10,194 per acre, which is a 30.9% increase from $7,789 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,194) by the Audubon County CSR2 average (69.3), which equals $147.10 per CSR2 point.

Average cash rent per tillable acre across Audubon County is $276 ($228-$322). The 2017-2021 average corn and soybean yield was 199 and 57 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 $1.39 for corn and $4.84 for soybeans. Current commodity markets for cash corn and soybean prices are around $6.25 and $14.25 per bushel, respectively.

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 Audubon County, Iowa farmland is around 2.71%, or an expected return on investment of just shy of two and three-quarters percent.

To get in contact with someone about your Dallas, Boone, Greene, or Guthrie County farm in Iowa, please contact Matt Adams (515.423.9235; Matt@PeoplesCompany.com) or Doug Bear (515.745.3192; Doug.Bear@PeoplesCompany.com).

Download PDF Handout: Carroll County

Download PDF Handout: Crawford County

Download PDF Handout: Shelby County

Download PDF Handout: Audubon County