The 2022 Iowa State University Land Value Survey reported a 17.0% statewide increase, pushing average Iowa farmland values to $11,411 per acre from November 2021 to November 2022. This marks the highest nominal land value ever recorded since Iowa State began tracking farmland values in the 1940s.
History of the Iowa State University Land Value Survey
Since 1950, the Iowa State University Land Value Survey has served as the only consistent county-level farmland value dataset for all 99 Iowa counties. The 2022 results continue the dramatic surge that began last year. Current values now exceed the previous nominal peak from 2013 by 31%. Even after adjusting for inflation, farmland values increased another 9%, surpassing earlier inflation-adjusted highs from 2012 and 2013.
Statewide Farmland Value Highlights
As of November 1, 2022, key findings include:
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Statewide average: $11,411 per acre
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Annual increase: $1,660 per acre
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Percentage increase: 17.0%
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Highest average values: Northwest Iowa at $14,878 per acre
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Lowest average values: South Central Iowa at $6,824 per acre
All nine crop reporting districts recorded increases.
Regional Differences Across Iowa
Growth varied by district, but strength remained widespread.
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Northwest and Southwest Iowa saw the largest gains, both exceeding 20%
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South Central and Southeast Iowa experienced smaller increases of 13.1% and 9.8%, respectively
Despite these differences, every district reported higher values year over year.
Land Quality Performance
Land values rose across all quality classes:
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High-quality land: +16.8%
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Medium-quality land: +17.7%
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Low-quality land: +15.2%
Medium-quality farmland experienced the strongest percentage growth, though high-quality land closely followed.
Key Drivers Supporting Farmland Values
Survey respondents identified several positive factors supporting land prices:
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High commodity prices
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Limited land supply
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Strong crop yields
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A favorable farm economy
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Ample cash reserves and credit availability
Nearly 98% of respondents cited at least one positive influence on land values.
Headwinds Facing the Farmland Market
Respondents also identified risks that could affect future values:
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Rising interest rates (noted by 34.5% of respondents)
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Higher input costs
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Economic and stock market uncertainty
While these factors create pressure, they have not yet reversed upward momentum.
Sales Activity Compared to Prior Years
Sales volume remained strong in 2022:
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53% of respondents reported more sales than in 2021
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31% reported similar activity
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16% reported fewer sales
North Central Iowa showed the strongest activity, while Central Iowa reported the least growth.
Expectations for Land Values and Crop Prices
Respondents expressed cautious optimism looking ahead:
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48% expect land values to increase over the next year
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24% expect values to remain steady
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28% expect a decline
Over a five-year horizon, more than 60% still anticipate higher land values.
Corn and soybean price expectations remain stable, with projected prices near $6.00 corn and $13.00 soybeans.
Interest Rates and Farm Income Outlook
Interest rates increased sharply in 2022, with respondents reporting:
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20-year farmland mortgage: ~6.65%
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One-year operating loan: ~6.98%
Despite rising rates, USDA forecasts show U.S. net farm income reached its highest inflation-adjusted level since 1973, supporting continued demand for land.
Investor Activity in Iowa Farmland
Investor interest increased modestly:
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27% of farmland sales went to investors in 2022
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68% still sold to existing farmers
South Central Iowa recorded the highest investor participation at 40%.
Outlook for 2023 and Beyond
Iowa farmland values reached record highs in both nominal and inflation-adjusted terms. Strong commodity prices, solid farm income, limited land supply, and investor interest continue to support the market. While higher interest rates may slow growth, most professionals do not expect a sudden market collapse. Instead, they anticipate stabilization with modest gains in the coming years.
Sources:
Iowa State University
David Whitaker “Land Guy”
