The value of Iowa farmland slipped 1.7% during the six-month period ending Sept. 1, according to a recently released survey conducted by the REALTORS® Land Institute. That decrease coupled with the 2.9% increase reported in March 2018 indicates a statewide average increase of 1.2% from September 1, 2017 to September 1, 2018, says survey coordinator Kyle Hansen, ALC, Hertz Real Estate Services, Newton, Iowa.
The nine Iowa crop reporting districts showed variability in average farmland values. The districts varied from 0.7% increase in the northeast district to a 3.9% decrease in the west-central district since March 2018.
Major factors contributing to current farmland values continue to include: commodity price levels, limited amount of land on the market, tariffs and world trade agreements, and increasing interest rates. Other factors include: tight operating capital, alternative investments, cash on hand, and yields.