Iowa Farmland Prices

April 28, 2021

Do you own land in Iowa but not sure how much it’s worth?

Are you interested in selling farmland in Iowa, but would like to know what land in your county typically brings?

Are you wondering if land prices are increasing or decreasing Iowa?

Check out the results from the 2020 Iowa Farmland Value Survey for Iowa State University!

In conclusion, this survey shows the 2020 state average for land in Iowa is estimated at $7,559/acre as of November 1, 2020. Professionals in the land real estate industry who submitted responses to the survey commented that low interest rates, high commodity prices, limited land supply and high demand to buy were all driving forces of the 1.7% increase in farmland prices from November 1, 2019 to November 1, 2020. This results in a $127 per acre increase as well.

Who is selling land in Iowa?

The majority of farmland I help sell comes from estate sellers which follows the results from the survey. 51% of farmland sales came from estate sales. Followed by 23% sold by retired farmers, 16% sold from active farmers and investors accounted for 9%.

Who is buying land in Iowa?

The majority of farmland buyers I see are existing farmers which follows the survey results too. This survey shows 72% of farmland sales were to existing farmers. Investors bought 22% of land sales in Iowa with new farmers representing 4% of farmland sales. The remanding 2% sold to other purchasers.

What county in Iowa has the highest farmland value?

According to the survey, Scott County, IA takes the lead for having the highest estimated farmland value of $10,659/acre. Followed by O’Brien County, IA at $10,656/acre and third, Sioux County, IA at $10,549/acre.

Are Iowa Farmland Prices Increasing in 2021?

Currently, we are 4 months in to 2021. While I cannot predict the future, from what we have seen in the real estate industry so far, I expect when this survey comes out in November this year it will show an increase in prices again.

If interest rates continue to stay low and commodity prices remain high, more farmers will be interested in purchasing farmland. If you’ve inherited land or looking to retire, now is a great time to sell farmland in Iowa! Click here to get started!

Therefore, don’t wait till harvest is over! You can still sell land with crop in the ground. Reach out for a free market analysis consultation today!

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Farmland Update: Week of April 19th – 25th, 2021

April 21, 2021

RECENT FARMLAND MARKET NEWS

In Iowa, there are currently 754 active farmland listings with and average listing price of farmland is $7,546/acre. This week there are two farmland auctions both in Southeast, Iowa. Here are the results from the auctions:

Wednesday April 21st, 2021: 194 acres in Van Buren County, Iowa

  • City: Birmingham, IA
  • Live and Online Public Auction Held at American Legion in Stockport, IA
  • Tract 1 – 102 acres of Farmland
    • Sold for $12,600/acre
    • 98.3% tillable
    • 81.2 CSR2
    • $155.17/CSR2
  • Tract 2 – 92 acres Mixed Used Land
    • Sold for $5,600/acre
    • 60.6% tillable
    • 63.3 CSR2
    • $88.47/CSR2

Wednesday April 21st, 2021: 59.88 acres in Wapello County, Iowa

  • City: Ottumwa, IA
  • On-site Auction
  • Sold for $8,950/acre
  • 91.9% tillable
  • 73.3 CSR2
  • $91.39/CSR2

Farmland Market Survey

The Realtors Land Institute and National Association of REALTORS Research Group released results of their Land Market Survey recently. The survey is done by land realtors from 2020 showing price and sales changes in land.

Results from the survey showed strongest sales and price increases in residential and recreational land:

  • Residential land sales price rose average of 6.8%
  • Recreational land sales price rose average of 3.6%
  • Ranch land sales price rose average of 3.1%

Overall, 3% increase in land sales and land prices rose an average of 2%.

Read more of their article here

Thoughts from Iowa Land Auctioneer, Rachel

With planting season upon us in Iowa, farmers are staying busy in the fields. Good quality farmland is still in high demand and prices are holding strong. Typically, there are fewer auctions as summer months approach and crop is in the ground, but I’m curious what Summer of 2021 will show for the land market.

Can I sell my farmland during the crop season?

Yes, you can still sell farmland during the crop season. I can help you set terms and conditions for your land auction to accommodate selling during the crop season especially if you have a tenant on the farm. I’m already noticing a few land auctions pop up for June and July and we are adding some at DreamDirt! Now is a great time to sell if you’ve inherited land or have thought about selling for the last few years! Get a free quote on what your farm is worth by filling out my form and I will get back to you!

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