December 26, 2014
Ames, Iowa – Average Iowa farmland value is now estimated to be $7,943 per acre—a drop in value of $773, or 8.9 percent, per acre. Land values were determined by the Iowa Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development at Iowa State University. Results from the survey are similar to results found by the Realtors Land Institute and the Federal Reserve Bank of Chicago.
While this year marks the largest decline in farmland values since 1986, it is only the second year since 1999 that the survey has shown a decline in farmland values. After hitting a historic peak in 2013, values have returned to a mid-point between 2011 and 2012 values. In spite of the decrease, farmland values are more than double what they were 10 years ago, 81 percent higher than 2009 values, and 18 percent higher than 2011 values.
The largest decrease in farmland value was in Southwest Iowa, which reported a drop of 13.5 percent. Worth County, located in the Northeast portion of the state, however, reported the largest percentage drop in value for any one county at 15.2 percent
. The value of all grades of farmland fell, with high-grade farmland taking the largest hit and losing a full 9 percent ($974 per acre) of its value.
In our four county area of northwest Iowa, land values in Lyon County fell from last year’s value of $10,875 an acre to $9,713 this year. In Osceola County, values went from $11,002 in 2013 to $9,372 this year. Sioux County values declined from $12,296 last year to $10,817 this year. And in O’Brien County the 2014 value of $10,699 an acre is down from $12,384 last year.
To take an in-depth look at the survey, click here.