Iowa’s farmland values declined in the first half of 2024, the first decrease in five years, as reported by Farm Credit Services of America. This drop is attributed to falling corn and soybean prices and high interest rates. Average farmland values in Iowa fell by 2.4% through June and over the past year. Despite the decline, values remain 58.3% higher than five years ago.
Iowa was the only state in the Farm Credit Services report to experience a decline in farmland values, while values in South Dakota, Wyoming, Kansas and Nebraska increased.
The reduction in farmland values comes alongside a decrease in sales activity and increased competition for investment dollars, with alternative investments like certificates of deposits becoming more attractive due to higher interest rates. Some experts predict farmland values could fall by another 20% next year due to continuing economic pressures.