In its spring survey of farm managers, real estate agents, and bankers, the Iowa Realtors Land Institute reports a slight trend upward in farmland values.
Market Appears to Be Firm
“Across the nine crop reporting districts, from September 1 to March 1, statewide values were up 1.3% so finally we’re seeing a little bit of optimism in land market,” says survey coordinator Matt Vegter of Hertz Farm Management “It’s a pretty flat market year over year, but at least a little bit more optimism here in the last six months.”
Vegter adds he was surprised all districts were up, and he notes eastern Iowa was higher than central or western Iowa.
Buyers Seek Quality
Over the past year, this group’s research has shown Iowa farmland with a 0.1% net gain.
The highest values for high quality crop land acres are:
- Northwest: $15,297
- East central: $14,824
- Northeast: $14,446
The most recent study from the Chicago Federal Reserve pegged a 5% increase in “good” Iowa farmland from October 1, 2025 to January 1, 2026.
Slight Uptick in Values Despite Market Headwinds
Respondents say the top three factors influencing the land market are commodity prices, supply of land, and interest rates—in that order. Despite tough profitability in commodity production, the survey points to limited inventory continuing to support land values.
More than 70% of respondents say the volume of land for sale is similar to 10% less than one year ago. Whereas only 12% say more land is available today than 12 months ago.
The survey coordinators point to the announced government payments providing additional support.
“Motivated buyers are still active and well-priced farms are still moving. We’re seeing that from both producers looking to expand and investors who continue to view farmland as a reliable long-term asset,” Rebecca Frantz of Hertz Farm Management says. “Inventory has been tighter, and we don’t expect that to change dramatically in the near term. When sellers do bring quality land to the market, there are still buyers ready to act. That balance is what’s keeping the market on solid footing.”
Not surprisingly, since September Iowa pasture values increased 2.6% over the past six months thanks to steady cattle prices. Also of note, timber and recreational land values rose 2.2%.
What’s In Store for Iowa Farmland Values?
As for a farmland values outlook, 70% of survey participants responded they expect land values to increase 0–10% over the next five years, and 5% expect lower values in five years.
And regarding who is buying land, the survey reports 67% of buyers are farmers or farmers with 1031 funds.
