The REALTORS® Land Institute (RLI) – Iowa Chapter released the results of its September 2022 Land Trends and Values Survey, offering insight into statewide farmland market conditions. Overall, the survey shows that Iowa farmland values continued to rise, although the pace of growth has begun to slow.
Statewide Farmland Value Trends
From March 2022 to September 2022, the statewide average farmland value increased by 2.8%. While this gain was modest compared to earlier periods, it followed a strong 14.1% increase recorded between September 2021 and March 2022. As a result, Iowa recorded a year-over-year increase of 16.9% in farmland values. However, after two consecutive surveys with double-digit gains, the market now appears to be leveling off.
Factors Influencing the Market
Several factors have begun to temper land value growth. Most notably, rising interest rates have increased borrowing costs. At the same time, higher input prices for the 2023 crop year have reduced purchasing power for some buyers. Because of these pressures, the market has shown signs of stabilization rather than continued acceleration.
Regional Differences Across Iowa
Farmland value changes varied by Crop Reporting District across the state.
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North Central Iowa reported no change during the survey period.
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South Central Iowa recorded the largest increase, with values rising 4.6%.
These regional differences reflect variations in demand, productivity, and local market conditions.
Timberland and Pastureland Trends
In addition to cropland, the survey tracked changes in timberland and pastureland values.
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Timberland values increased by 3.9% statewide.
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Pastureland values rose by 3.1% statewide.
These gains suggest continued interest in recreational, conservation, and diversified land uses.
About the RLI Iowa Farmland Survey
The REALTORS® Land Institute – Iowa Chapter has conducted this farmland value survey twice annually since 1978, releasing reports each March and September. RLI survey participants specialize in agricultural land brokerage, management, development, and appraisal. Their daily involvement in farmland transactions provides valuable market insight. In addition to this survey, RLI supports land professionals through the RLI Farm and Ranch Multiple Listing Service, which focuses exclusively on agricultural real estate.
Final Takeaway
While Iowa farmland values continued to increase in 2022, the pace of growth slowed as economic pressures mounted. Even so, farmland demand remained strong across most regions. As the market adjusts, professional insight and reliable data remain essential tools for landowners, buyers, and investors navigating Iowa’s farmland market.
REALTORS® Land Institute – Iowa Chapter “The Voice of Land”
www.rliiowachapter.com
David Whitaker – Iowa Land Guy
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