The value of an average acre of Iowa cropland remained unchanged for the six-month period ending September 1, according to the semi-annual survey of farmland professionals conducted by the Iowa Chapter of the REALTORS Land Institute. The chapter has conducted the March and September surveys since 1978.
Combining this stable period with the 0.1% increase reported in March 2020 indicates a statewide average increase of 0.1% from September 1, 2019 to September 1, 2020, report survey coordinators Matt Vegter and Elliott Siefert, Hertz Real Estate Services, Nevada, Iowa.
Crop reporting districts showed variability regarding the average farmland value. The districts varied from 1.3% increase in the south-central district to a 1.7% decrease in the north-central district since March 2020.
The state average value for high-quality cropland is $9,236 per acre; it is $6,975 per acre for medium-quality cropland and $4,686 per acre for low-quality cropland. The state average value of non-tillable pastureland remains unchanged at $2,932 an acre and the state average value of timber land rose 1% to $2,566 an acre.
Once again, the northwest crop district reports the highest average price for high-quality land at $10,760 an acre followed by the east-central district at $10,355, the southeast at $10,062, the west central at $9,996, the central at $9,749, the northeast at $9,296, the north central at $8,781, the southwest at $7,570 and the south-central at $6,552 an acre.
Major factors supportive to current farmland values continue to include limited amount of land on the market, 1031 Exchange activity and low interest rates. Negative factors include trade uncertainty, variability in yields for the 2020 crop year, and weather patterns.