DES MOINES, Iowa — The average value of Iowa farmland has fallen in 2024, according to the Iowa State Center for Agriculture and Rural Development (CARD) and the annual Iowa State Land Value Survey.
The state average decline of 3.1% breaks an upward trend in land value the state has seen over the past five years, according to CARD. Last year, state average land value was reported at a 3.7% increase over the previous year.
The average decrease in value of an acre of farmland was measured at $369 by CARD, leading to an average value of $11,467 an acre.
The decrease in value comes after a long growth in value and record-setting peak hit in 2023.
75 counties of Iowa's 99 reported a decrease in farmland value in the 2024 survey.
- Counties
- O'Brien County had highest average value per acre at $15,921, after a reported decrease of 2.4% or $392 from year before
- Appanoose County had the lowest average value per acre at $6,840, after a reported increase of 7.7% or $486 from year before
- Shelby County had the largest dollar amount loss in average value per acre, down $1,170
- Wayne County had the largest percentage amount loss in average value per acre, down 9.7%
- Wayne County had the largest dollar amount increase in average value per acre however, up $690
- Decatur County had the largest percentage amount increase in average value per acre, up10.5%
- Osceola County had the lowest percentage and dollar value average increases, up 0.1% and $3
- Land quality
- "Low quality" land across Iowa now averages $7,450 per acre, down 2.8% or $215
- "Medium quality" land across Iowa now averages $10,740 per acre, down 3.0% or $335
- "High quality" land across across Iowa now averages $13,930 per acre, down 2.6% or $367
- Most mentioned negative factor affecting decline in land value was lower commodity prices
- Others negative factors were cited to include long-term interest rates, higher input costs and cash/credit availability
- Most mentioned positive factor affecting land value was limited land supply
- Others positive factors were cited to include strong yields, cash/credit availability and strong demand for land
CARD's web portal is available here, and offers visualization tools allowing for in-depth analysis and comparison.
Breaking the trend
“We saw land values rise for five straight years, including surges of 29% and 17%, which naturally leads to a reset or balancing in the market,” said Dr. Rabail Chandio, who is responsible for the annual land survey. “If we look back to the previous peak in 2013, the market 'adjusted' with relatively small declines spread over a few years.”
CARD cites the fact that "when adjusting for inflation, the 2024 average value is 2.5% lower than 2013’s inflation adjusted values."
Chandio said that high interest rates of the previous two years have continued to affect farmland value, and that rate cuts are not enough yet to ease the pressure.
“It takes time—sometimes up to a decade—for interest rate changes to fully ripple through the land market," she said.
Increases in the face of statewide average decrease
The only counties to see increase or no change in average farmland value are:
- Adair (0.9%)
- Adams (3.8%)
- Allamakee (3.8%)
- Appanoose (7.7%)
- Cedar (1.1%)
- Clarke (5.3%)
- Clinton (1.2%)
- Decatur (10.5%)
- Dubuque (3.7%)
- Jackson (0.1%)
- Jefferson (0.9%)
- Jones (1.8%)
- Linn (0.4%)
- Lucas (5.7%)
- Lyon (0.5%)
- Madison (0.4%)
- Monroe (0.6%)
- Muscatine (0.8%)
- Osceola (No change)
- Ringgold (4.4%)
- Taylor (5.3%)
- Union (3.1%)
- Van Buren (1.8%)
- Wayne (10.3%)
The only crop-reporting district to report an increase in average value was the Iowa South Central District which most of the above counties are included in.
Only minimal decreases were seen in the other two southern districts, revealing a stable trend Chandio said.
CARD said the survey is based on "Reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales, and is intended to provide information on general land value trends, geographical land price relationships, and factors influencing the Iowa land market."
What factors are causing the decrease in value?
Survey respondents pointed to falling commodity prices and increasing input costs for farming as well. Farm income is expected to follow the decrease in land value, falling 4.1% according to CARD. However, this is a significantly smaller decrease than last year's reported fall of 17.4%.
However, livestock markets could bring some stability to collapsing farm income, Chandio said.
“While crop receipts are down, livestock receipts are up 8.4%, offering some balance," he said. "So, livestock markets, like cattle and hogs, have fared relatively better, but high input costs are still exerting enough pressure to keep margins very tight.”
In the short term, survey respondents are expecting declines in the next year, with 58% figuring on continued drop in value. Most believed a fall of around 5% will occur.
In the long term however, looking at the next five years, 80% of respondents are expecting land values to increase, with 36% expecting an increase of 10-20%.