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Iowa Farmland Values Still Declining

September 16, 2016 - Peoples Company

Iowa Chapter of the Realtor’s Land Institute Land Trends and Values Survey for September 2016 was released earlier this week.  Here’s how it breaks down:

  • Iowa’s farmland values dropped 8.7% over the past year.
  • Iowa’s farmland values are down 25% from the 2013 peak.
  • Statewide average farmland value through September was $6,486/acre. The average value in September 2013 was $8,750/acre.
  • All nine crop reporting districts showed year-over-year declines ranging from 6.7% in Northeast Iowa to 11.7% in Southwest Iowa.
  • Land Values are expected to continue to fall due to declining corn & soybean prices which are at least 45% below peaks in 2012, a drought year.
  • Timber acres climbed between 4.5% to 5.1% in south-central Iowa and southeast Iowa, where buyers are looking for hunting land.
  • One trend supporting farmland values is that there are fewer farms for sale.
  • There is still strong competition for land.  With little available for sale, people are willing to pay higher prices because there aren’t other options for buying land in their area.
  • Farmers still buying most of the farms with investors coming in second.
  • Very few distressed sales currently but could potentially have more in the future due to decreased profitability in farming.

“That’s my story and I’m sticking to it”

Jim “the Land Talker”

Published in: Land Values