Abstract

Fluctuations in land values can signal changes in market conditions, impact farmers' financial well-being, and influence policy decisions, making it essential to record and analyze them. Since 1950, the Iowa State University Land Value Survey has been the only data source that provides a county-level land value estimate for each of the 99 counties in Iowa. The 2024 Iowa State University Land Value Survey reported a 3.1% decrease in average Iowa farmland values, bringing the statewide average to $11,467 per acre as of November 2024. This marks a shift from the previous year’s 3.7% increase, reflecting a cooling in the farmland market after three consecutive years of record highs. The inflation-adjusted value, $8,630 per acre in 2015 dollars, represents a 5.5% decline, driven by tightening profit margins and falling commodity prices. The decline in land values is largely attributed to persistent downward pressures from lower commodity prices, elevated input costs, and the lingering effects of high interest rates from 2022 and 2023. Although interest rates began to ease late in 2024, their earlier increases have significantly impacted farmland profitability. Despite strong demand for farmland and resilient crop yields, particularly in Iowa, these positive factors were insufficient to offset the broader market challenges. Most crop reporting districts experienced decreases in land values, with West Central and North Central districts reporting the largest declines of 7.4% and 4.9%, respectively. The South Central district, however, saw an increase in land values due to investor demand, limited supply, and land use for recreational purposes. Low-quality land experienced the smallest decreases, while medium- and high-quality land values fell more substantially. The 2024 survey results align with other regional and national surveys, which have reported declines or slower growth in farmland values across the Corn Belt and Great Plains.