The average value of an acre of Iowa cropland rose 0.8% for the March 2019 to September 2019 period, according to the twice-year survey conducted by the state's Rural Land Institute chapter. "Combining this increase with the 1.0% decrease reported in March 2019 indicates a statewide average decrease of 0.2% from September 1, 2018 to September 1, 2019," reports Kyle Hansen, ALC, survey chair.
The nine crop reporting districts showed variability regarding the average farmland value, he notes. "The districts varied from 1.8% increase in the north central and east central districts to a 1.2% decrease in the northwest district since March 2019."
Major factors supporting to current farmland values continue to include limited amount of land on the market, government compensation (MFP Payment) and low interest rates. Negative factors include trade uncertainty, decreasing levels of working capital, variability in yields for the 2019 crop year, and weather patterns, he states.
On and annual basis, the survey shows the average value of cropland in the northwest district is down 1.7% and down 1.9% in the south central district. These are the only two districts to report declines in both the September survey and March survey. The west central and southeast districts are the only districts to report gains in both the September and March surveys -- annual gains of 1.4% and 4.4%, respectively. The east central district registers an annual gain of 0.5%. The southwest district lists an annual decline of 0.1%; the north central reports a 1% annual decrease; the central lists a decline of 1.3% and the northeast reports an annual decrease of 1.9%.
The survey pegs the average price of an acre of non-tillabe pasture at $2,806, down 0.8% from the March survey and the average value of an acre of tillable at $2,479, down 1.2% from March.