Starting our 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 Dallas, Boone, Greene, and Guthrie 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 DALLAS COUNTY, IOWA:

Of the 378,200 total acres in Dallas County, the average Corn Suitability Rating 2 (CSR2) for the 293,435 acres of farmland within the county is 76.6 with an average 2021 farmland value of $10,120 per acre, which is a 26.50% increase from $7,998 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,120) by the Dallas County CSR2 average (76.6), which equals $132.11 per CSR2 point.

Average cash rent per tillable acre across Dallas County is $267 ($234-$302). The 2017-2021 average corn and soybean yield was 181 and 54 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 $1.48 for corn and $4.94 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 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 Dallas County, Iowa farmland is around 2.64%, or an expected return on investment over 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 BOONE COUNTY, IOWA:

Of the 367,200 total acres in Boone County, the average Corn Suitability Rating 2 (CSR2) for the 315,061 acres of farmland within the county is 75.5 with an average 2021 farmland value of $11,177 per acre, which is a 25.7% increase from $8,890 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($11,177) by the Boone County CSR2 average (75.5), which equals $148.04 per CSR2 point.

Average cash rent per tillable acre across Boone County is $262 ($232-$297). The 2017-2021 average corn and soybean yield was 190 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 $1.38 for corn and $4.68 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 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 Boone County, Iowa farmland is around 2.34%, or an expected return on investment of just over two and one-quarter 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 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 2021 farmland value of $10,603 per acre, which is a 27.2% increase from $8,336 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,603) by the Green County CSR2 average (78.3), which equals $135.42 per CSR2 point.

Average cash rent per tillable acre across Greene County is $259 ($226-$288). The 2017-2021 average corn and soybean yield was 196 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 $1.32 for corn and $4.63 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 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 Greene County, Iowa farmland is around 2.44%, 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 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 2021 farmland value of $9,226 per acre, which is a 30.3% increase from $7,080 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($9,226) by the Guthrie County CSR2 average (61.4), which equals $150.26 per CSR2 point.

Average cash rent per tillable acre across Guthrie County is $247 ($210-$283). The 2017-2021 average corn and soybean yield was 192 and 53 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 $1.29 for corn and $4.66 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 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 Guthrie County, Iowa farmland is around 2.68%, 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: Dallas County

Download PDF Handout: Boone County

Download PDF Handout: Greene County

Download PDF Handout: Guthrie County