Lower commodity prices and higher interest rates are starting to show up in land values. Two ag lenders say farmland values in Iowa fell for the first time in five years.
Farm Credit Services of America and Frontier Farm Credit released its benchmark farmland values report.
It showed since January, land values have made modest gains in Eastern Kansas, Nebraska, South Dakota and Wyoming. It’s a different story in Iowa, however, where the value of cropland has declined overall 2.4 percent.
“The combination of higher interest rates and tighter margins for grain producers is having an impact on cropland values,” said Tim Koch, executive vice president of business development for the two Associations, which operate as part of a collaboration.
But they say despite the pullback, Iowa’s real estate values are up nearly 60-percent since 2019. and across all five states they serve, values remain at or near record levels.
View the full report here.
