The Iowa Farmland Market Is Flat-Lining
Over the past month, the Iowa farmland market has shown signs of leveling out. We have seen several auctions result in no-sales or delayed sales. At the same time, we also witnessed strong auctions that achieved prices of $18,000 to $22,000 per acre.
So what does this mean for landowners and buyers?
Simply put, just because one farm sells for $20,000 per acre does not mean every farm will achieve that same price. Farmland values continue to depend on a wide range of factors.
What Still Drives Farmland Value
Every farm is different. Location, farmability, shape, size, CSR2 score, soil type, slope, drainage, water access, recreational appeal, building potential, and development opportunities all play a role in determining value.
However, one of the most influential factors remains buyer competition—especially from neighboring farmers.
Most farm buyers are located within 50 miles of the property. Even when investor buyers are involved, auction success still relies on competitive local bidding. When neighboring farmers are less aggressive than in recent years, sale prices naturally soften.
How Auction Strategies May Shift
When backup bidders step back, we expect to see more auction and real estate firms adjust their strategies. This may include offering farmland through one-chance bid opportunities, such as sealed-bid sales, to help sellers achieve the highest possible price.
In some cases, we may also see auctions result in no-sales followed by post-auction negotiations to meet a seller’s desired price.
What This Means for Sellers
As land sales specialists, our role becomes even more important. We must sharpen the pencil, study the market carefully, and manage seller expectations with accuracy and honesty.
This does not signal a market crash. Instead, we believe the Iowa farmland market is flattening as buyers exercise caution amid recession concerns. Even so, strong prices continue to occur, and we are seeing a significant increase in acres coming to market.
Recent Iowa Farmland Auction Results
Results from 92 farmland auctions totaling 10,770 acres over the past month show the following statewide averages:
- Statewide average: $11,795 per acre
- High-quality farmland: $14,675 per acre
- Medium-quality farmland: $9,211 per acre
- Low-quality farmland: $5,110 per acre
Our Commitment to Iowa Landowners
Our mission is to serve as trusted advisors. Our obligation is to market your farmland to the largest possible audience while delivering the most successful outcome.
When you think of farmland, think of us.
David & Ann Whitaker |
Iowa Land Guy
Iowa Land Values by CSR Score
Green represents 75–100 CSR, tan represents 50–75 CSR, and orange represents under 50 CSR.
Farmland Acres Sold in Iowa
Farmland Values Across Iowa
