Iowa Farmland Market: A Year of Adjustment, Not Decline
The 2025 Iowa State University Land Value Survey shows that Iowa farmland values increased 0.7% from November 2024 to November 2025, bringing the statewide average to $11,549 per acre. While this rise is modest, it signals market stability—especially following last year’s 3.1% correction and three prior years of explosive growth.
Even after adjusting for inflation, today’s farmland values remain historically strong. Nominal values sit 32.5% above the 2013 peak, reinforcing the long-term resilience of Iowa farmland.
What Landowners Should Know: Key Survey Insights
Statewide Trends
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State average value: $11,549 per acre (up $83 from 2024)
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Inflation-adjusted value: $8,475 per acre (down 1.8%)
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Market context: This year’s slight increase follows three record-breaking years (2021–2023) and a minor 2024 correction.
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Interpretation: A movement of less than ±5% is viewed as a market adjustment rather than a shift.
Regional Patterns: A Divided but Stable Market
Top-Performing Regions
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Northeast: +4.1% (strongest districtwide growth)
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East Central: +3.4%
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Northwest: +2.9% (remains the district with the highest prices)
Areas Seeing Softness
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North Central: –2.6%
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Central: –2.0%
These declines are concentrated in Iowa’s more crop-dependent regions, while strong livestock areas saw more stability and growth.
District Value Range
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Highest: Northwest at $14,522 per acre
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Lowest: South Central at $7,623 per acre
County-Level Investment Highlights
Top Values
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O’Brien County: $16,269 per acre — the highest in the state
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Sioux & Lyon Counties: continue strong, each above $15,000
Most Affordable
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Appanoose County: $6,679 per acre
Biggest Movers
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Largest increases: Clayton & Allamakee Counties (+4.4%)
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Largest decreases: Kossuth County (–4.3%), Humboldt (–3.8%), Wright (–3.8%)
Even with local fluctuations, all county changes remained within ±5%, reinforcing the narrative of a stable correction year rather than a downturn.
Quality Tiers: How Different Land Classes Performed
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High-quality land: $14,030/acre (+0.7%)
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Medium-quality land: $10,809/acre (+0.6%)
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Low-quality land: $7,580/acre (+1.7%)
Low-quality land surprisingly posted the strongest percentage increase—particularly in northern and southeastern districts—reflecting demand for pasture, timber, and recreational land.
Market Forces Influencing 2025 Farmland Values
Positive Drivers
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Limited farmland supply (mentioned by 21% of respondents)
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Stronger-than-expected yields:
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Corn: 216 bu/ac
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Soybeans: 65 bu/ac
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Solid buyer demand:
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68% of sales went to existing farmers
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Investor interest remains steady:
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26% of purchases were investor-driven
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Market Headwinds
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Commodity price declines: the most commonly cited negative factor (32% of respondents)
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High interest rates: still weighing on financing costs despite recent declines
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Elevated input costs: continue to pressure farm profitability
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Sales activity slowed:
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42% reported fewer sales
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Only 17% saw more sales than last year
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The combined effect of these forces created a year of mild appreciation and broad stability.
Buying or Selling in 2026? Strategic Considerations
For Sellers
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This year’s increase signals stability, not a downturn.
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Many experts still anticipate softness in the next 12 months, meaning acting sooner could be beneficial.
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Estate sales remain dominant (55% of all transactions), continuing a multi-year trend of generational transition.
For Buyers
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82% of agricultural professionals predict land values will increase over the next five years.
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Areas with slight 2025 pullbacks may offer strong long-term buying opportunities.
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Quality still matters—high-quality land showed the strongest stability, even in weakening districts.
Looking Forward: Expert Market Expectations
One-Year Outlook
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41% forecast a decline
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28% expect stability
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31% expect an increase
Most predicted declines are small (under 5%).
Five-Year Outlook
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82% expect rising values
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41% expect increases of 10–20%
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Only 10% expect any decline
Price Predictions
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Corn: $4.96/bushel by 2030
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Soybeans: $11.96/bushel by 2030
With yields strong and long-term affordability remaining tight, the fundamentals continue to support long-run appreciation.
About the ISU Land Value Survey
Since 1950, the Iowa State University Land Value Survey has been the only annual, county-level farmland value estimate for all 99 counties, built from the collective input of experts including:
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Agricultural lenders
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Brokers & appraisers
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Farm managers
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Government professionals
In 2025, 316 agricultural professionals contributed 463 county-level estimates, making it one of the most comprehensive indicators of Iowa’s farmland market.
For questions about the survey findings or methodology, please contact Dr. Rabail Chandio, Assistant Professor and Extension Economist, Department of Economics, Iowa State University (rchandio@iastate.edu).
Source: Chandio, R. 2025. “2025 Iowa State University Land Value Survey: Overview.” CARD working paper 25-WP 674, Iowa State University Extension and Outreach, Center for Agricultural and Rural Development.
