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Survey: Iowa Farmland Values up 29 percent
The average value of an acre of Iowa farmland rose 29 percent in 2021, according to Iowa State’s annual Land Value Survey.
The survey found the nominal value of an acre of farmland is higher than at any point since Iowa State University began surveying values in 1941 and is 12 percent higher than the previous peak in 2013. But, the current value is lower than 2012 and 2013 in inflation-adjusted terms.
Farmland values haven’t increased by more than 25 percent since 2011.
The survey found that the average statewide value of an acre of farmland is $9,751.
Higher commodity prices, favorable interest rates, and strong yields were mentioned as positive factors influencing the land market. Other factors included limited land supply, strong demand, COVID-related government payments, and a good farm economy.
The most frequently mentioned negative factor impacting land values was higher input costs.
Survey respondents said they expect farmland values to increase less than 10 percent in 2022.
All of Iowa’s counties showed an increase in land values. Scott and Decatur Counties reported the highest and lowest values. Land values in Scott County increased 30%, or $3,193 per acre, and land values in Decatur County increased 31.5%, or $1,213 per acre.
Statewide, low-quality land now averages $6,397 per acre, medium-quality land averages $9,071 per acre, and high-quality land averages $11,834 per acre.
Land values were determined by the 2021 Iowa State University Land Value Survey, conducted in November by the Center for Agricultural and Rural Development at Iowa State and Iowa State University Extension and Outreach.
