Continuing with the Iowa Farmland Values blog series, we will use the 2021 Farmland Value Survey to highlight average farmland characteristics and production costs in and across Hamilton, Hardin, Marshall, and Grundy 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 HAMILTON COUNTY, IOWA:

Of the 369,600 total acres in Hamilton County, the average Corn Suitability Rating 2 (CSR2) for the 315,307 acres of farmland within the county is 79.1 with an average 2021 farmland value of $11,821 per acre, which is a 28.5% increase from $9,198 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($11,821) by the Hamilton County CSR2 average (79.1), which equals $149.44 per CSR2 point.

Average cash rent per tillable acre across Hamilton County is $248 ($213-$285). The 2017-2021 average corn and soybean yield was 196 and 58 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 $1.33 for corn and $4.59 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices just over $6.50 and $13.50 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 Hamilton County, Iowa farmland is around 2.10%, or an expected return on investment of just over two 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 HARDIN COUNTY, IOWA:

Of the 364,400 total acres in Hardin County, the average Corn Suitability Rating 2 (CSR2) for the 336,611 acres of farmland within the county is 79.5 with an average 2021 farmland value of $10,960 per acre, which is a 28.5% increase from $8,531 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,960) by the Hardin County CSR2 average (79.5), which equals $137.86 per CSR2 point.

Average cash rent per tillable acre across Hardin County is $269 ($226-$315). The 2017-2021 average corn and soybean yield was 196 and 58 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 $4.64 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices just over $6.50 and $13.50 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 Hardin County, Iowa farmland is around 2.45%, 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 MARSHALL COUNTY, IOWA:

Of the 366,700 total acres in Marshall County, the average Corn Suitability Rating 2 (CSR2) for the 316,451 acres of farmland within the county is 75.7 with an average 2021 farmland value of $10,174 per acre, which is a 24.9% increase from $8,146 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($10,174) by the Marshall County CSR2 average (75.7), which equals $134.40 per CSR2 point.

Average cash rent per tillable acre across Marshall County is $286 ($241-$327). The 2017-2021 average corn and soybean yield was 221 and 63 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 $4.54 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices just over $6.50 and $13.50 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 Marshall County, Iowa farmland is around 2.81%, or an expected return on investment of just over 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 GRUNDY COUNTY, IOWA:

Of the 320,800 total acres in Grundy County, the average Corn Suitability Rating 2 (CSR2) for the 308,030 acres of farmland within the county is 86.9 with an average 2021 farmland value of $11,724 per acre, which is a 26.8% increase from $9,247 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($11,724) by the Grundy County CSR2 average (86.9), which equals $134.91 per CSR2 point.

Average cash rent per tillable acre across Grundy County is $300 ($262-$338). The 2017-2021 average corn and soybean yield was 209 and 62 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 $1.44 for corn and $4.84 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices just over $6.50 and $13.50 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 Grundy County, Iowa farmland is around 2.56%, or an expected return on investment of just over two and one-half 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: Hamilton County

Download PDF Handout: Hardin County

Download PDF Handout: Marshall County

Download PDF Handout: Grundy County