The average value of good Iowa cropland fell 1.9% during the six-month period ending in September. That's according to a survey conducted by the Iowa Chapter of the REALTORS® Land Institute (RLI). Combining this 1.9% decrease with the 7.6% decrease reported in March 2009 indicates a statewide average decrease of 9.5% for the year from September 1, 2008 to September 1, 2009. The districts varied from a 1.2% increase in North Central Iowa to a 5.1% decrease in Southwest Iowa for the March 2009 to September 2009 period.
Factors contributing to the decrease in farmland values include: lower commodity prices, low livestock prices, volatility in the stock market, and declining confidence in the world economy. Positive factors include low interest rates, well capitalized farmers, anticipated good yields, strong farm profits in 2007 and 2008, lack of alternative investments, and short supply of listings. The Iowa Farm & Land REALTORS® farmland value survey has been conducted as of March
and September since 1978.
The press release is here and the full data is here.
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