Iowa Land Values Stall; Sharp Gains Disappear
The recent sharp runup in Iowa cropland values has stalled, according to a recent survey of land professionals. The semi-annual survey conducted by the Iowa Chapter of the Realtors Land Institute (RLI) found the value of an average acre of cropland slipped a slim -0.2% during the six-month period ending September 1. That nearly negligible decrease combined with the slight gain recorded during the previous six-month period puts the annual increase of an average acre of Iowa cropland at 0.6%.
The most recent report is a far cry from the preceding two-year period of astounding percentage gains in values, which ranged from 14% to 33%. The stabilization in land prices first appeared in the September-to-March period when the same RLI survey listed a price gain of only 0.8%.
“After double-digit increases through much of 2021 and 2022, the 2023 land market has confirmed its move toward leveling off. We continue to see a struggle between rising interest rates trying to pull the market lower while positive net farm incomes allow the market to remain supported at today’s values,” report Matt Vegter and Elliott Siefert, Hertz Real Estate Services, Nevada, Iowa, who conducted the RLI survey.
The range of results by crop reporting district is -- down by 2.9% in the northwest district to an increase of 1.3% in the south-central district, where urbanization is a factor. Timber and pasture acres showed slight gains with a 1.1% increase to timberland values and a 1.4% increase in pastureland values across the state.
