Iowa Farmland Market Cooling: What the 3.1% Decline Really Means
The 2024 Iowa State University Land Value Survey reveals that Iowa farmland values decreased by 3.1% from November 2023 to November 2024, bringing the statewide average to $11,467 per acre. This modest decline represents a natural market correction after three consecutive years of record-high values, not a cause for alarm. Despite this adjustment, current values remain remarkably strong—still 31.6% higher than the 2013 peak and well above pre-pandemic levels.
What Landowners Need to Know: Key Survey Findings
Statewide Trends
- Average value: $11,467 per acre (down $369 from 2023)
- Inflation-adjusted value: $8,630 per acre in 2015 dollars (down 5.5%)
- Market perspective: This cooling follows an exceptional 29% surge in 2021 and 17% increase in 2022
Regional Opportunities & Challenges
- Premium markets: Northwest Iowa maintains top position ($14,109 per acre)
- Emerging value: South Central Iowa bucked the trend with a 3.6% increase ($7,754 per acre)
- Readjustment areas: West Central (-7.4%) and North Central (-4.9%) districts saw the largest corrections
- Strategic buying zones: Counties like Decatur (+10.5%) show localized growth potential
County-Level Investment Insights
- Top-tier values: O’Brien County leads at $15,921 per acre
- Value opportunity: Appanoose County remains most affordable at $6,840 per acre
- Areas to watch: 75 of 99 counties reported decreases, but only 28 counties saw declines exceeding 5%
Market Forces Shaping Iowa’s Farmland Future
Positive Market Drivers
- Limited inventory continues: 23% of respondents cite restricted land supply as the primary factor supporting values
- Exceptional productivity persists: Strong corn (213 bu/acre) and soybean (61 bu/acre) yields demonstrate Iowa’s agricultural resilience
- Investor confidence remains: Despite economic pressures, investors still represent 23% of all farmland purchases
Market Headwinds to Navigate
- Commodity price pressures: Lower corn and soybean prices (down 10% and 18% respectively) are squeezing farm profitability
- Interest rate impacts: Two years of elevated rates have increased borrowing costs, though recent cuts offer some relief
- Production cost challenges: While input costs have moderated slightly, the 2024 Iowa Cost of Production estimates still exceed current commodity prices
Buying or Selling in 2025? Strategic Considerations
For Potential Sellers
- The 3.1% decline represents a modest adjustment after extraordinary gains, not a market collapse
- 58% of experts predict continued softness in 2025, suggesting earlier action may be advantageous
- Estate sales continue to dominate the market (57% of transactions), indicating planned transitions remain common
For Prospective Buyers
- Despite current pressures, 79% of agricultural professionals forecast land value increases within five years
- Regional variations offer strategic buying opportunities, especially in areas showing stability or growth
- Quality differences matter—high-quality land saw smaller percentage decreases than medium-quality land
Looking Ahead: Expert 5-Year Projections
- Land values: 36% of respondents predict 10-20% appreciation by 2029
- Commodity prices: Corn expected to reach $5.06/bushel, soybeans $11.67/bushel by 2029
- Market confidence: Overwhelming long-term optimism despite short-term adjustment period
About the ISU Land Value Survey
Since 1950, the Iowa State University Land Value Survey has been the definitive resource for county-level land value estimates across all 99 Iowa counties. The 2024 survey captures insights from 330 agricultural professionals who provided 479 county-level land value estimates, including agricultural lenders (31.5%), brokers/realtors (17.6%), farm managers (16.4%), and other land experts.
This comprehensive annual survey serves as the gold standard for understanding Iowa’s agricultural land market, offering essential data for landowners, farmers, investors, and policymakers making critical decisions about the state’s most valuable asset.
For questions about the survey findings or methodology, please contact Dr. Rabail Chandio, Assistant Professor and Extension Economist, Department of Economics, Iowa State University (rchandio@iastate.edu).
Source: Chandio, R. 2024. “2024 Iowa State University Land Value Survey: Overview.” CARD working paper 24-WP 667, Iowa State University Extension and Outreach, Center for Agricultural and Rural Development.
