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 Lucas, Clarke, Decatur, and Wayne Counties. If you are interested in acquiring similar information, contact your local extension office or land grant institution within your state.

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 LUCAS COUNTY, IOWA:

Of the 278,300 total acres in Lucas County, the average Corn Suitability Rating 2 (CSR2) for the 175,437 acres of farmland within the county is 43.8 with an average 2021 farmland value of $5,340 per acre, which is a 31.5% increase from $4,061 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($5,340) by the Lucas County CSR2 average (43.8), which equals $121.92 per CSR2 point.

Average cash rent per tillable acre across Lucas County is $201 ($159-$248). The 2017-2021 average corn and soybean yield was 158 and 45 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 $1.28 for corn and $4.51 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 Lucas County, Iowa farmland is around 3.80%, or an expected return on investment of just over of three and three-quarters percent.

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 CLARKE COUNTY, IOWA:

Of the 276,000 total acres in Clarke County, the average Corn Suitability Rating 2 (CSR2) for the 192,845 acres of farmland within the county is 47.2 with an average 2021 farmland value of $5,739 per acre, which is a 31.0% increase from $4,382 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($5,739) by the Clarke County CSR2 average (47.2), which equals $121.59 per CSR2 point.

Average cash rent per tillable acre across Clarke County is $217 ($176-$250). The 2017-2021 average corn and soybean yield was 159 and 50 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 $1.36 for corn and $4.34 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 Clarke County, Iowa farmland is around 3.78%, or an expected return on investment of just over of three and three-quarters percent.

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 DECATUR COUNTY, IOWA:

Of the 342,100 total acres in Decatur County, the average Corn Suitability Rating 2 (CSR2) for the 236,134 acres of farmland within the county is 40.1 with an average 2021 farmland value of $5,062 per acre, which is a 31.5% increase from $3,849 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($5,062) by the Decatur County CSR2 average (40.1), which equals $126.23 per CSR2 point.

Average cash rent per tillable acre across Decatur County is $163 ($131-$191). The 2017-2021 average corn and soybean yield was 166 and 51 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 $0.98 for corn and $3.20 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 Decatur County, Iowa farmland is around 3.22%, or an expected return on investment of just shy of three and one-quarter percent.
 

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 WAYNE COUNTY, IOWA:

Of the 337,100 total acres in Wayne County, the average Corn Suitability Rating 2 (CSR2) for the 285,213 acres of farmland within the county is 50.7 with an average 2021 farmland value of $5,405 per acre, which is a 31.5% increase from $4,110 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($5,405) by the Wayne County CSR2 average (50.7), which equals $106.61 per CSR2 point.

Average cash rent per tillable acre across Wayne County is $184 ($158-$218). The 2017-2021 average corn and soybean yield was 165 and 50 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 $1.12 for corn and $3.68 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 Wayne County, Iowa farmland is around 3.40%, or an expected return on investment of just shy of three and one-half percent.

To get in contact with someone about your Lucas, Clarke, Decatur, or Wayne 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: Lucas County

Download PDF Handout: Clarke County

Download PDF Handout: Decatur County

Download PDF Handout: Wayne County