How Does CSR2 Affect Farmland Value?
CSR2 affects Iowa farmland value because it measures the soil’s potential productivity. Generally, farmland with a higher Corn Suitability Rating 2 (CSR2) commands a higher price per acre because productive soils are attractive to farmers and investors. In competitive Iowa farmland markets, a high-quality farm with a CSR2 rating of 90 may sell for $19,000 per acre or more. However, drainage, location, farmability, tillable acres, and buyer demand also influence the final sale price.
Understanding how CSR2 affects farmland value is important for anyone buying, selling, or investing in Iowa farmland.
What Is CSR2 in Iowa?
CSR2 stands for Corn Suitability Rating 2. It is a soil productivity rating system developed by Iowa State University to evaluate the potential productivity of Iowa soils under typical management conditions.
CSR2 ratings generally range from 5 to 100, with higher numbers indicating greater potential productivity.
Here is a general breakdown:
- 90–100 CSR2: Highly productive farmland with excellent agricultural potential.
- 80–89 CSR2: High-quality farmland with strong production potential.
- 70–79 CSR2: Productive farmland that can support successful row crop operations.
- 60–69 CSR2: Farmland with greater variability in soil productivity.
- Below 60 CSR2: Land that may have additional production limitations or alternative uses.
These ranges are general descriptions rather than official classifications. Actual farm performance depends on management, drainage, weather, and other factors.
Does a Higher CSR2 Mean Farmland Is Worth More?
Generally, yes. Higher CSR2 ratings are often associated with higher farmland values because buyers recognize the income-producing potential of productive soils.
For example, a highly productive Iowa farm with a CSR2 rating of 90 may sell for $19,000 per acre or more in a competitive market.
However, a farm with a CSR2 rating of 85 may sometimes sell for more than a farm with a CSR2 rating of 90.
Why?
Because CSR2 is only one part of the property’s overall value.
A farm with excellent drainage, large open fields, strong access, and neighboring farmers interested in expanding their operations may generate more buyer competition than a farm with a higher CSR2 but less desirable characteristics.
Higher CSR2 ratings generally support higher farmland values, but the actual sale price is determined by the market.
How Is Price Per CSR2 Point Calculated?
Some farmland buyers and brokers use a price-per-CSR2-point calculation when comparing Iowa farmland sales.
The calculation is simple:
Sale Price Per Acre ÷ CSR2 Rating = Price Per CSR2 Point
For example, if a farm with a CSR2 rating of 90 sells for $19,000 per acre:
$19,000 ÷ 90 = $211.11 per CSR2 point.
This calculation can help compare farmland sales within similar markets.
However, price per CSR2 point should not be the only method used to determine farmland value. It does not independently account for differences in drainage, location, field layout, or other characteristics.
What Other Factors Affect Iowa Farmland Value?
Although CSR2 is important, several other factors influence how much buyers are willing to pay for farmland.
Drainage and Tile
Well-drained farmland can be attractive to buyers because proper drainage supports timely planting, harvesting, and consistent crop production.
Farms with documented tile drainage systems may generate additional buyer interest.
Farmability
Large, open fields with straight rows, minimal obstacles, and convenient access can improve farming efficiency.
A farm with excellent farmability may command a premium over a property with similar soil productivity but more difficult field conditions.
Location
Location is a major factor in Iowa farmland values.
Properties near established farming operations, grain markets, ethanol plants, and major transportation routes may have additional advantages.
Neighboring farmers looking to expand their operations can also create strong competition.
Tillable Acres
Buyers frequently evaluate the percentage of a farm that can be used for crop production.
For example, a 160-acre property with 155 tillable acres may attract a different buyer pool than a 160-acre property containing substantial timber, waterways, or recreational ground.
Buyer Competition
The number of interested buyers can significantly affect the final sale price.
When multiple farmers and investors compete for the same property, the selling price may exceed expectations based on CSR2 alone.
Can Lower-CSR2 Farmland Still Be Valuable?
Absolutely.
Not every buyer is looking for the highest CSR2 rating.
Lower-CSR2 farmland can offer other valuable characteristics, including:
- Hunting and recreational opportunities
- Pasture and livestock production
- CRP and conservation income
- Timber and wildlife habitat
- Development potential
- Expansion opportunities for neighboring farmers
For example, a southern Iowa farm with a CSR2 rating of 55 may attract strong interest from recreational buyers because of its timber, wildlife habitat, and income-producing acres.
The highest and best use of the property plays an important role in determining its value.
How Do I Find the CSR2 Rating of My Iowa Farm?
Iowa landowners can find CSR2 information through soil mapping resources, including the USDA Web Soil Survey and Iowa State University soil data resources.
A farmland broker can also help review soil maps and calculate a weighted average CSR2 rating for a property.
When reviewing a CSR2 report, it is important to understand whether the rating represents the entire farm or only the tillable acres.
For properties containing timber, waterways, building sites, or other non-tillable areas, these averages may be different.
Should I Use CSR2 to Price My Farmland?
CSR2 should be considered when determining farmland value, but it should never be the only factor.
A farmland market analysis should evaluate:
- Recent comparable farmland sales
- CSR2 ratings and soil productivity
- Drainage and tile improvements
- Tillable acres and field layout
- Location and accessibility
- Farm income and lease arrangements
- Current buyer demand
Two Iowa farms with similar CSR2 ratings can sell for substantially different prices.
Understanding those differences is important when establishing an asking price or developing a farmland auction strategy.
Does CSR2 Affect Farmland Auction Results?
Yes. CSR2 is one of the measurements many Iowa farmland auction buyers review before deciding how much they are willing to bid.
High-quality farmland with CSR2 ratings of 85, 90, or higher may attract significant attention from farmers looking to expand and investors seeking productive agricultural land.
However, strong auction results depend on more than soil ratings.
A well-marketed farm with excellent drainage, convenient access, and multiple interested buyers may outperform a property with a higher CSR2 rating but less desirable characteristics.
At Whitaker Marketing Group, we evaluate the entire property when developing a farmland marketing and sales strategy.
Frequently Asked Questions About CSR2 and Farmland Value
Is 90 CSR2 considered good farmland in Iowa?
Yes. A CSR2 rating of 90 generally indicates highly productive Iowa farmland. In competitive markets, farms with this level of soil productivity may sell for $19,000 per acre or more, depending on location and other property characteristics.
Is 80 CSR2 good farmland?
Yes. A CSR2 rating of 80 generally represents high-quality farmland with strong agricultural production potential. Actual market value depends on location, drainage, farmability, and buyer demand.
Does higher CSR2 always mean higher farmland prices?
No. Higher CSR2 ratings generally support stronger farmland values, but a farm with a lower CSR2 can sell for more because of better location, drainage, access, or buyer competition.
How much is a CSR2 point worth?
There is no fixed dollar value for a CSR2 point. Buyers sometimes calculate price per CSR2 point to compare sales, but that calculation must be considered alongside other property characteristics.
Does tile drainage increase CSR2?
Installing tile drainage does not automatically change a soil’s published CSR2 rating. However, tile improvements may increase actual productivity and make farmland more attractive to buyers.
Is CSR2 important when selling farmland at auction?
Yes. CSR2 is an important consideration for many Iowa farmland buyers. However, auction results also depend on marketing, location, farmability, and the level of competition among bidders.
What Is Your Iowa Farmland Worth?
CSR2 is an important starting point when evaluating Iowa farmland, but it does not tell the entire story.
A farm’s actual market value depends on its soil quality, drainage, location, tillable acres, income potential, and the buyers interested in purchasing it.
At Whitaker Marketing Group, we specialize in farmland auctions, brokerage, and land valuations throughout Iowa and the Midwest.
Whether your farm has a CSR2 rating of 60, 75, 85, or 95, understanding how your property compares with recent farmland sales is essential when deciding whether to sell.
Thinking about selling your Iowa farmland? Contact Whitaker Marketing Group to discuss your property’s value, current market conditions, and selling options.
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