When you’re trying to understand what your land is worth — whether for selling, estate planning, financing, or just making decisions — you’ve got options. Two common tools are:
-The Iowa State University Land Value Survey (“ISU Survey” or “ISU Land Value Survey”)
-A custom land valuation or full appraisal tailored to your parcel
They both provide value (no pun intended), but they serve different purposes, use different methods, and have different levels of precision. Knowing the differences helps you choose which is right for your situation.
What Is the ISU Land Value Survey?
The ISU Land Value Survey is conducted annually by Iowa State University, through the Center for Agricultural and Rural Development (CARD) and ISU Extension & Outreach.
Key features:
-Based on responses from agricultural professionals (farm managers, appraisers, lenders, county assessors, etc.) who know local land markets.
-Respondents estimate land values (high quality, medium quality, low quality) at the county-level and for crop reporting districts, then statewide.
-Provides average per-acre values for all counties in Iowa, with breakdowns by land quality.
-Purpose: to show trends, geographic comparisons, and market direction rather than precise valuations of a specific parcel. It is not intended to be a formal appraisal.
Recent data points:
-The 2024 ISU survey puts the statewide average farmland value at $11,467 per acre as of November 1, 2024, which is a 3.1% decrease from 2023.
-The survey shows variation by district: e.g. the South Central district was one of the few with land value increases.
What Is a Custom Land Valuation / Appraisal?
A custom land valuation or appraisal is a detailed, parcel-specific assessment of your land, using multiple data sources and on-site inspection. It’s designed to provide a value that reflects your specific land’s characteristics rather than averages. Some sources in Iowa that offer or describe this:
–Iowa Appraisal offers appraisal services specifically for agricultural land, improvements, etc., using certified appraisers.
What it typically includes:
-On-site inspection (terrain, drainage, improvements, etc.)
-Detailed soil analysis (often CSR2 or similar soil productivity measures in Iowa)
-Comparable recent land sales (matching by quality, proximity, size, land use)
-Adjustments for non-agricultural features (easements, water access, improvements like tile drainage, buildings, roads)
-Income approach if the land produces income (cash rent, etc.)
-Consideration of trends, but focused on that parcel’s effective date of valuation
When to Use Each
-Use the ISU Survey if you want to understand how land values in your county or district are trending; comparing your land’s value roughly to averages; deciding if current market conditions are favorable; or for general strategic planning.
-Use a Custom Appraisal when you need a defensible value for legal, financial, or transactional purposes: selling, mortgaging, estate or tax matters, partitions, divorce, grants, etc. Also when your land has special features (e.g. tile drainage, varied topography, water access, easements) that typical averages won’t capture.
Potential Pitfalls / Limitations
With ISU Survey:
-Averages smooth over variations — soil, improvements, micro-location, etc.
-Survey values sometimes run higher than actual sales in certain years or counties, especially when land values are changing rapidly. (One study compared 20 Iowa counties over time and found that in many years the ISU survey values were higher than sale prices.
-Doesn’t consider every parcel’s specific features (tile, drainage, shape, distance to markets, improvements).
With Custom Valuation:
-Costs more, takes more time.
-Quality depends on the appraiser (how experienced, how much data they have, how current their comparable sales are).
-Effective date matters — past sales or data may lag behind recent market shifts.
-Sometimes there may be limited comparable sales in remote or uncommon land types, which forces larger adjustments or estimate uncertainty.
How Whitaker Marketing Group Recommends Choosing
Here are steps we advise landowners / clients take:
1. Start with the ISU Land Value Survey to benchmark where your land lies compared to county/district/state averages.
2. Analyze your parcel’s special features: soil quality (CSR2), improvements (drainage, outbuildings, roads), market access, restrictions or easements.
3. If you’re planning a major decision (sale, financing, legal use), order a custom appraisal. When doing so, pick an appraiser with agricultural experience in your county/district.
4. Use comparable recent sales data: try to find sales in your area of land of similar quality and with similar improvements.
5. Monitor trends: commodity prices, input costs, credit availability, interest rates. These often show up in the ISU survey before fully feeding into sale prices.
6. Combine both pieces: using the ISU survey gives you a sense of the “ceiling” or “floor” for value in your area, and the custom valuation fills in the details for your parcel. That way you avoid over- or under-pricing.
Final Thoughts
The ISU Land Value Survey is a powerful tool: it gives you a reliable, up-to-date snapshot of average farmland values in Iowa, by county and land quality. It’s excellent for trend analysis, benchmarking, and understanding general market conditions. However, when it comes to your land, one size doesn’t fit all. If your land has unique features, or if you need a value for legal or financial purposes, a custom land valuation or appraisal, done by a competent professional, will almost always be more accurate and defensible. At Whitaker Marketing Group, we believe in using both together: letting broad surveys guide expectations, and then investing in custom valuation when it truly matters. That’s how you make informed decisions and maximize value.
515-996-5263 |✉️info@wmgauction.com
