Iowa Farmland Market Update! Iowa Farmland Prices.

The perfect storm! What is driving Farmland? The last 12 months we have seen farmland prices increase quickly. It is not just one thing that is driving the market. It is a multitude of things all combined. First, we had Covid and farmers were granted MFP payments. Then came PPP payments. China was recovering from a swine flu and had requested to buy larger amounts of our corn and bean crops than previous years. We then had an administration change that made people fearful of proposed changes to the way we do business when it comes to transferring farmland from one person to the next. Commodity prices increased and we started to see land prices rise. January to April we sold less farmland than we did in 2020 which created a lower supply issue. Interest rates are historically lower than ever. All combined, these factors have drove farmland up 26.6% year over year. Since May we have sold more acres every month than we did in 2020 (48% more acres). Will land prices continue to stay strong? Is this the new normal? Since I have been alive the price of bread, vehicles, and houses have all increased and they have not gone back down to where they were in my younger days. I feel that farmland will have its ups and downs on a micro level, but I don’t see the price of farmland moving in the downward direction. I do feel that we will see the amount of auctions and acres decrease in time with continued demand for the best investment on earth. “Farmland” Results from the 158 Sales (17,902 acres) this last month have the average for the state at $11,107 high quality ground at $13,552/ acre, and medium quality ground averaging $8,772/ acre. Low quality ground has moved up at an average of $6,345/ acre.

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David & Ann Whitaker | Iowa Land Guy When you think of Farmland Think of US!