Iowa Farmland Values Notch 7.6% Six-month Decline
Mar 31, 2015
The value of Iowa cropland declines 7.6% during the six-month period ending March 1, according to the semi-annual survey conducted by the Iowa Chapter of REALTORS® Land Institute. That decline when added to the 3.4% decrease last September indicate a statewide average decrease of 11.0% for the year from March 1, 2014 to March 1, 2015.
High-quality cropland declined 7.3% to a statewide average of $9,924 an acre, according to the survey. The value of medium-quality cropland decreased 8.3% to $7,375 an acre while low-quality cropland declined 7.4% to $4,816 an acre. The statewide average value of non-tillable pasture land rose 1.1% to $2,802 an acre. The average value of timber land rose 1% to $2,284 an acre.
All of the state's nine crop reporting districts reported a decrease in the survey. The smallest percentage decline was reported in the southwest district which record an average decrease of 4.6%. The northeast district reported the highest percentage decline at 11%.
Iowa cropland values peaked in the March 2013 survey at $8,690 an acre, according to Kyle Hansen, ALC-A, Hertz Real Estate Services, Nevada, and chair of the survey committee. Each survey since then has reported lower values with the current survey pegging the average value of an acre of Iowa cropland at $7,372 an acre. That represents a decline of 15% from the March 2013 peak.
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