For the First Time in Five Years, Iowa Farmland Values Fall

USDA Photo by Lance Cheung.

Iowa State University’s annual farmland survey revealed average farmland values declined in 75 of Iowa’s 99 counties this year. The average farmland values fell 3.1% this year. This comes after values had climbed to record highs over the past five years.

Iowa State University’s survey of 330 agricultural professionals projects that Iowa farmland values will fall again next year due to the current agricultural downturn. Falling corn and soybean prices, coupled with higher interest rates and input prices, have been the driving factors. The five-year outlook is more optimistic.

This year’s farmland value decreased by $369 to $11,467 an acre. ISU economist Rabail Chandio says that five straight years of surging land prices naturally leads to a reset or rebalancing in the market.

Of the 60% of survey respondents who expect farm values to decrease again next year, most expect a decline of less than 5%. On the bright side, 80% of respondents expect farm values will increase again over the next five years, with 36% expecting 10% to 20% gains.