The value of an acre of Iowa farmland decreased 5% from March to September, according to a survey of Iowa farmland professionals. The survey, conducted semi-annually by the Iowa Chapter of the Real Estate Land Institute (RLI), found the decline, coupled with the 3.1% slipped for the September 2023 to Mach 2024 period, suggests Iowa farmland has decreased by 8.3% over the past year.
After rapid increases in values in 2021 and 2022, the land market has leveled off in the last 18 months and begun to soften, the RLI notes. The survey also found that Iowa pastureland slipped 2.9% and timberland edged 2.4% lower, following the trend of tillable acres.
Survey respondents described the market as being “cautious” but still relatively strong in relation to recent weakness in the commodity markets. Many are hopeful ample yields across much of Iowa and the likeliness of lower interest rates on the horizon will help the land market stabilize, the RLI comments. Respondents expect the market to continue to be very neighborhood-dependent, with sales in some areas staying firm and others continuing to soften.
On a land-quality basis, the RLI puts the value of an acre of high-quality cropland at $13,808, down $609 (down 4.4%) from March. The survey pegs the value of an acre of medium-quality cropland at $10,638, down $578 (5.4%). It pegs the value of low-quality cropland at $7,523, down $493 (down 6.6%) from March. In addition, the survey places the average of an acre of non-tillable pasture at $4,641 and the value of an acre of timberland at $4,428.