Hotter Than a Two-Dollar Pistol: Land Is on the Move
There is an incredible amount of farmland changing hands across Iowa. When you look at the age of Iowa landowners, the next decade alone is projected to see roughly 1,000 acres per county transfer ownership. That level of movement is reshaping the farmland landscape statewide.
Why More Landowners Are Considering Selling
Tax Law Uncertainty Is Driving Decisions
Many landowners are weighing a sale due to potential changes in federal tax law. While Congress continues to shift the target, current discussions suggest stepped-up basis and 1031 exchanges remain in place. At the same time, policymakers are floating a 5% increase in federal capital gains tax.
Even the possibility of change has motivated landowners to explore their options sooner rather than later.
How Today’s Farmland Is Being Purchased
Most Purchases Are Supported by Outside Capital
A common theme in recent transactions is that farmland purchases are often subsidized by other sources of income or equity, including:
- Off-farm employment
- Paid-off farmland
- PPP or MFP funds
- Inheritance or long-held family capital
- Reallocation of investment assets into farmland
Younger farmers frequently point out that today’s land prices do not always cash flow based on crop income alone — and they are correct. In this market, most new purchases require supplemental income. Even so, there is little evidence of a slowdown or major market correction on the horizon.
Recent Farmland Value Trends
Survey Data Confirms Strong Price Growth
The Realtors Land Institute recently released survey data that aligns closely with what we are seeing on the ground:
- 18% increase in farmland values over the last six months
- 26.6% increase year over year
Iowa Farmland Sales Results
Statewide Averages From Recent Sales
Based on 167 farmland sales totaling 18,355 acres in the past month, pricing across Iowa breaks down as follows:
- Statewide Average: $10,809 per acre
- High-Quality Land: $12,446 per acre
- Medium-Quality Land: $8,479 per acre
- Low-Quality Land: $5,978 per acre
Quality land continues to command strong premiums, while lower-quality ground has also seen meaningful appreciation.
Our Commitment to Iowa Landowners
Trusted Advisors With a Proven Platform
Our mission is to be your trusted advisors. Our obligation is to market your farmland to the largest possible audience, creating the strongest opportunity for a successful outcome.
Get a Free Iowa Farmland Valuation
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David & Ann Whitaker | Iowa Land Guy
When you think of farmland, think of us.
Map of Iowa illustrating farmland value trends by crop reporting district from June 2021 through November 2021.
Comparison of Iowa farmland acres sold in 2020 versus 2021, highlighting increased market activity.
