Thirty-eight acres of farmland sold in Sioux County
for $23,000 per acre, or $24,498.60 per tillable acre. This sale highlights how multiple factors continue to influence Iowa farmland prices.
“There are a multitude of factors that impact farmland prices,” said David Whitaker of Whitaker Marketing Group. “However, competitive bidding and utilizing the auction method of marketing remain the most effective way to sell farmland in this market.”
According to Whitaker, the market continues to trend upward. “Markets are driven by emotion, and right now the emotion toward farmland is strong,” he noted.
Iowa Farmland Prices Continue to Rise
Over the past year, farmland prices have increased significantly. In fact, the market rose more than 35% in 2021 alone. As a result, many landowners and investors are closely watching opportunities that may develop in the months ahead.
Several factors influence buyer decision-making. These include age, industry exposure, geography, available cash,
1031 tax-deferred exchange timelines
, foreign trade, banking and USDA programs, inflation, and
interest rates
.
Local Buying Power Supports Strong Land Values
Despite higher prices, the Iowa farmland market remains stable due to strong local buying power. According to Iowa State University Extension,
82% of farms in Iowa are owned free and clear
.
Because of this, many local buyers have significant equity and available cash. This financial strength continues to support land values across the state.
A Historic Transition of Farmland Ownership
Iowa is home to approximately 35.7 million acres of farmland, and it is estimated that nearly 10% of that land changes hands each year. Looking ahead, one of the largest transitions of wealth in agricultural history is underway.
As land passes to the next generation, some owners will choose to keep the farm, while others may decide to sell and cash out. Either way, activity in the land market is expected to remain strong.
Why Now May Be an Ideal Time to Sell
Although buyers vary in background and strategy, they all share one thing in common: a desire to own more land. At the same time, interest rates remain historically low, commodity prices are strong, and farmland inventory is limited.
With stock market volatility pushing investors toward stable assets, farmland continues to stand out as one of the most reliable long-term investments available. For many landowners, this combination of factors makes it an excellent time to sell.
Live and online simulcast farmland auction sign for 38± acres in Sioux County, Iowa.
