2021 ISU Land Value Survey
The 2021 ISU Land Value Survey shows the average value of an acre of Iowa farmland skyrocketed 29 percent over the past 12 months to $9,751/acre as of November 1, 2021. The nominal value of an acre of farmland is now 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; although the current value in inflation-adjusted terms are still lower than that for 2012 and 2013.
The surge is buoyed by substantially higher commodity prices, low interest rates, stronger-than-expected crop yields, robust federal ad hoc payments, and limited land supply despite increase in sales activity.
New: Auctions and Surveys show a Near-20% Surge in Iowa Farmland Values
Iowa and the Midwest farmland market has seen the largest increase since the 2013 peak. In August 2021, the Federal Reserve Bank of Chicago reported a 18% annual growth in Iowa‘s “good” farmland values from July 1, 2020 to July 1, 2021, an 6% increase from April to July 1, 2021. This is also consistent with the auction prices shown in the quarterly Iowa Land Supply and Price Update Q2 2021 joint with Farmland Finder, which shows the Q2 2021 farmland auction prices for 85% tillable grounds increased more than 20%, rising from $9,956/acre in Q1 2021 to $11,907/acre in Q2 2021. The implied sales prices for all land quality classes have risen to much higher levels of $133–$172/CSR2. This reflects tremendous surges in commodity prices as corn futures prices rose from $5/bushel in late 2020 to $6–$7/bushel in the last two months. Please also find Dr. Zhang’s discussions of the Iowa and Midwest farmland market on Agricultural Policy Review.
A New Collaboration with FarmlandFinder: Quarterly Update on Iowa Farmland Supply and Prices
I am excited to join Steven Brockshus at FarmlandFinder in launching this joint collaboration between Iowa State University Extension and Outreach and FarmlandFinder. Starting from Q1, 2021, we will launch a quarterly CARD report offering updates on Iowa farmland supply and price trends. I think this quarterly update, built on ISU-FarmlandFinder Research Collaboration Agreement 136585, provides timely and important ground-truth information on the Iowa land market, especially critical land supply information. More details could be found on the CARD website.
2017 Iowa Farmland Ownership & Tenure Survey Paper Copy Available for Order ($5 Only)
The new, 60-page 2017 Iowa Farmland Ownership and Tenure Survey report is available for order at the Extension Store for only $5 each paper copy. This is a unique survey across the nation which provides statistically representative information on many aspects of land ownership, tenure and transitions in Iowa. For example, the survey finds that 60% of Iowa land is owned by people 65 years or older, 82% of Iowa land is owned free of debt, and 29% of all acres is primarily owned for family or sentimental reasons.