Current Trends in the Iowa Farmland Market
Farmland conversations often raise questions, especially when people hear about rising interest rates and predictions of a market slowdown. However, from our perspective, there has been no indication of declining demand. In fact, more acres are coming to the market, and prices continue to remain steady—or even increase. While interest rates may influence the housing sector more sharply, the farmland market tends to respond differently.
Many factors impact land values, including CSR2, farmability, interest rates, 1031 exchanges, foreign trade, global conflict, commodity prices, government programs, equipment costs, input prices, available equity, and local buying power. Of all these variables, we weigh commodity prices at roughly 60% of total market influence. As long as grain markets stay strong, we expect the land market to follow suit.
Another sign of strength is buyer demand before auctions. Nearly every seller receives offers to purchase the farm early and cancel the sale. Even so, the auction method remains the most effective way to achieve true price discovery. Our last four auctions all exceeded expectations and outperformed all pre-auction offers.
Recent results from 62 farmland auctions totaling 5,589 acres show a statewide average of $12,293 per acre. High-quality farmland averaged $15,314 per acre, medium-quality ground averaged $9,402 per acre, and lower-quality acres held steady at approximately $6,000 per acre.
Our mission is simple: to serve as your trusted advisors.
Our obligation is to market your farmland to the largest possible audience so you receive the strongest outcome.
David & Ann Whitaker | Iowa Land Guy
When you think of Farmland Think of US!
Iowa Land Values by CSR Score: Green= 75-100CSR Tan=50-75CSR Orange= less than 50CSR
