The value of an average acre of Iowa farmland held steady to slightly firmer for the six months ending March 1, according to the Iowa Chapter of the Realtors Land Institute. It’s semi-annual survey found a slim 1.3% rise in values, according to survey coordinators Matt Vegter and Rebecca Frantz, Hertz Farm Management, Nevada, Iowa.
“This spring we are seeing the first signs of optimism in three years,” reports Frantz, with commodity prices, interest rates, scarce supply of land for sale and the recent round of government payments the chief drivers of farmland values.
“Motivated buyers are still active and well-priced farms are still moving,” states Vegter. “We’re seeing that from both producers looking to expand and investors who continue to view farmland as a reliable long-term asset.”
Coupling the current 1.3% six-month rise with the March-September 2025 slippage of -1.2% puts the annual change in values at a negligible 0.1% gain, Vegter says.
Values on tillable acres were up in all nine of Iowa’s crop reporting districts, with the northeast central district listing the largest gain at 3.4% followed by the east central’s 2% rise. The south-central district reports the slimmest increase at 0.6% followed by the northwest district’s 0.7% boost.
When looking at the survey by soil quality, high quality cropland rose 1.5% to an average of $13,878 an acre, medium quality cropland increased 1.2% to $10,805 and low quality cropland gained 1.3% to $7,694 an acre.
Pasture values increased 2.6% over the past six months. The cattle market continues to support demand for pasture, with feeder cattle prices remaining steady, they note. Timber and recreational land values rose 2.2%, reflecting continued interest in recreational ground despite broader market uncertainty. On an annual basis, pasture is up nearly 6% while timber is 1.4% higher.
Looking ahead, 70% of survey respondents expect land values to increase 0 – 10% the next five years. Only 5% expect values to be lower. The long-term outlook reflects continued confidence in Iowa farmland as a stable asset class, they note, with both operational and investor buyers expected to sustain demand regardless of short-term market fluctuations.