12/20/00
Value of Iowa Farmland Gains 4.3 Percent in 2000 AMES, Iowa -- The average value of an acre of farmland in Iowa increased to $1,857 in 2000, reversing a trend that saw small declines in land values during the previous two years, according to an annual survey conducted at Iowa State University. The increase averaged $76 an acre, or 4.3 percent statewide, said Michael Duffy, ISU Extension economist who directed the survey. The increase followed declines of 1.1 percent in 1999 and 1.9 percent in 1998. Before 1998, land values had increased for 11 consecutive years. This year's increase was reflected in individual increases in all 99 Iowa counties. In the two previous years, only 30 counties had increases in 1998, and 39 counties had increases in 1999 while the state overall average was dropping. Increases this year ranged from 6.5 percent in Dickinson, Lyon, O'Brien and Osceola counties in northwest Iowa to 1.6 percent in Scott County in east central Iowa. Scott County, which has had the highest land values in the state for several years, topped the $3,000 mark this year with an average value of $3,018. The highest average value ever reported in a county in Iowa was $3,484 in Scott County in 1981. The 2000 statewide average is $290 below the all-time high of $2,147 per acre reported in 1981. The greatest increases this year were in counties along the western border of the state. East central, central and south central Iowa showed the smallest percentage increases. Low grade land averaged $1,117 this year and showed a 6.9 percent increase over 1999. As land quality improved, the increase in value declined, with medium grade land averaging $1,701, a 4.4 percent increase, and high grade land averaging $2,324, a 3.3 percent increase. Duffy said six factors were mentioned by more than 10 percent of the respondents as having positive impacts on land values this year. These factors were government program payments, mentioned by 47 percent, investment demand (23 percent), crop yields (also 23 percent), land supply (19 percent), farm expansion and consolidation (15 percent) and favorable interest rates (13 percent). Three factors were mentioned as negative influences. Poor markets or prices or some variation of those themes were listed by 70 percent of the respondents. Unfavorable interest rates were mentioned by 16 percent and a poor agricultural economy or outlook was mentioned by 10 percent. Most buyers of Iowa farmland continue to be existing farmers who are increasing their holdings (65 percent), Duffy said, but investors made 29 percent of the purchases this year. This percentage has been consistent for the past three years and is a significant increase over 1997. Sales to investors were highest in southwest Iowa at 43 percent, while sales to existing farmers were highest in northwest Iowa at 71 percent. Twenty-one percent of the survey respondents said there were more sales this year, 51 percent said the number of sales was about the same as last year, and 28 percent said there were fewer sales. The highest land values by crop reporting district were reported in northwest Iowa where the average was $2,198 per acre, up 6.8 percent from last year. The lowest average value was $992 per acre in south central Iowa, up 1.1 percent from last year. Iowa State University has conducted an annual survey of land values since 1941. The ISU survey is conducted on Nov. 1 each year and is the only survey that reports land values in all 99 Iowa counties. More than 1,100 licensed real estate brokers and others knowledgeable about farmland are invited to participate, and this year's survey drew 603 usable responses from all 99 counties. Only the statewide data and the crop reporting district data are calculated directly from the survey results. Data collected in the survey are combined with data from the U.S. Census of Agriculture to determine county figures. The survey has been conducted annually since 1941 and is cosponsored by the Iowa Agriculture and Home Economics Experiment Station and Iowa State University Extension. For additional information on the survey and on surveys from prior years, visit the ISU Extension web site at http://www.extension.iastate.edu/ By Crop Reporting District
|
District
|
2000 $/acre
|
$/acre
|
$ change
|
% change
|
Northwest
|
2,189
|
2,059
|
139
|
6.8%
|
North Central
|
2,169
|
2,073
|
96
|
4.6%
|
Northeast
|
1,868
|
1,807
|
61
|
3.4%
|
West Central
|
1,924
|
1,837
|
87
|
4.7%
|
Central
|
2,195
|
2,128
|
67
|
3.1%
|
East Central
|
2,190
|
2,118
|
72
|
3.4%
|
Southwest
|
1,412
|
1,346
|
66
|
4.9%
|
South Central
|
992
|
981
|
11
|
1.1%
|
Southeast
|
1,655
|
1,570
|
85
|
5.4%
|
State Avg.
|
1,857
|
1,781
|
75
|
4.3% By CountyCounty: 2000 $/acre 1999 $/acre $ Change % Change Adair 1,198 1,137 52 4.6% Adams 1,204 1,141 63 5.6% Allamakee 1,228 1,181 47 4.0% Appanoose 816 803 14 1.7% Audubon 1,839 1,730 109 6.3% Benton 2,151 2,094 57 2.7% Black Hawk 2,394 2,298 95 4.1% Boone 2,328 2,277 51 2.2% Bremer 2,176 2,078 98 4.7% Buchanan 2,142 2,052 91 4.4% Buena Vista 2,319 2,203 115 5.2% Butler 2,106 2,023 83 4.1% Calhoun 2,354 2,284 70 3.1% Carroll 2,066 1,952 114 5.8% Cass 1,620 1,528 92 6.0% Cedar 2,365 2,308 58 2.5% Cerro Gordo 2,189 2,099 90 4.3% Cherokee 2,041 1,918 123 6.4% Chickasaw 1,744 1,666 78 4.7% Clarke 956 932 25 2.6% Clay 2,139 2,033 106 5.2% Clayton 1,686 1,622 64 4.0% Clinton 1,961 1,897 64 4.3% Crawford 1,828 1,718 110 6.4% Dallas 1,971 1,911 61 3.2% Davis 1,063 1,027 36 3.5% Decatur 765 752 13 1.7% Delaware 2,263 2,181 82 3.8% Des Moines 1,773 1,695 78 4.6% Dickinson 1,975 1,855 120 6.5% Dubuque 2,034 1,960 74 3.8% Emmet 2,205 2,095 109 5.2% Fayette 1,966 1,884 82 4.4% Floyd 2,029 1,932 97 5.0% Franklin 2,161 2,094 67 3.2% Fremont 1,554 1,469 85 5.8% Greene 2,035 1,966 69 3.5% Grundy 2,395 2,324 71 3.1% Guthrie 1,665 1,585 81 5.1% Hamilton 2,467 2,409 58 2.4% Hancock 2,214 2,139 75 3.5% Hardin 2,208 2,156 52 2.4% Harrison 1,700 1,601 98 6.1% Henry 1,716 1,640 76 4.6% Howard 1,571 1,500 70 4.7% Humboldt 2,363 2,303 60 2.6% Ida 2,056 1,932 124 6.4% Iowa 1,817 1,743 74 4.3% Jackson 1,713 1,663 50 3.0% Jasper 1,892 1,813 80 4.4% Jefferson 1,327 1,268 59 4.7% Johnson 2,266 2,175 91 4.2% Jones 1,854 1,811 43 2.4% Keokuk 1,620 1,534 86 5.6% Kossuth 2,282 2,214 68 3.1% Lee 1,567 1,516 50 3.3% Linn 2,357 2,303 54 2.4% Louisa 1,979 1,901 78 4.1% Lucas 873 858 15 1.7% Lyon 2,000 1,878 122 6.5% Madison 1,456 1,394 61 4.4% Mahaska 1,655 1,581 73 4.6% Marion 1,581 1,532 49 3.2% Marshall 2,015 1,952 63 3.3% Mills 1,698 1,605 93 5.8% Mitchell 1,987 1,892 95 5.0% Monona 1,561 1,468 93 6.3% Monroe 1,081 1,043 38 3.6% Montgomery 1,443 1,364 79 5.8% Muscatine 2,142 2,082 60 2.9% OBrien 2,468 2,318 150 6.5% Osceola 2,112 1,983 129 6.5% Page 1,302 1,231 71 5.8% Palo Alto 2,133 2,051 82 4.0% Plymouth 2,146 2,017 129 6.4% Pocahontas 2,329 2,257 72 3.2% Polk 2,026 1,973 53 2.7% Pottawattamie 1,809 1,707 102 6.0% Poweshiek 1,811 1,735 76 4.4% Ringgold 918 889 29 3.2% Sac 2,206 2,084 121 5.8% Scott 3,018 2,970 48 1.6% Shelby 1,807 1,702 105 6.2% Sioux 2,319 2,178 140 6.4% Story 2,384 2,327 57 2.4% Tama 1,965 1,903 62 3.3% Taylor 1,051 1,007 44 4.4% Union 1,108 1,074 34 3.2% Van Buren 1,173 1,134 39 3.5% Wapello 1,251 1,195 56 4.7% Warren 1,589 1,551 38 2.4% Washington 2,071 1,960 110 5.6% Wayne 833 819 14 1.7% Webster 2,432 2,375 57 2.4% Winnebago 1,995 1,927 68 3.5% Winneshiek 1,600 1,534 66 4.3% Woodbury 1,665 1,565 100 6.4% Worth 2,005 1,923 82 4.3% Wright 2,434 2,372 61 2.6% |