The Iowa chapter of the Realtors Land Institute conducts a twice a year survey to show trends in the state’s farmland values. The latest survey was sent out on March 1, and committee co-chairs Rebecca Frantz and Matt Vegter say the results show “a stable market.”
Whereas from March 2024 to September 2024, respondents said the value were down 5%, this year’s March survey shows values more steady at dropping just 1%. Comparing March 2024 to March 2025, the Iowa farmland market is down 6%.
The survey asks for opinions on the current status of Iowa’s farmland market.
Vegeter highlights the early March time frame as weighing on respondents with uncertainty around tariffs, however, overall greater optimism since September due to strong harvest results and improved commodity prices.
“This is stable compared to how bearish the results were in September,” he says.
Across the nine reporting districts, only the southcentral district was slightly positive at up 0.2% since September. The other districts ranged from -2.1% to -0.1%.
In September, all districts were down from the previous March with ranges from -3.6% to -5.8%.
As for what’s driving the value of farmland, Frantz says the factors are similar from September 2024 until March 2025. In order, the respondents rank them: commodity prices, interest rates, supply of land, general economic inflation, and government support.
Regarding return on crop land, Frantz says respondents say 2 to 3% return is expected.
She highlights a tight supply of ground is adding to the steady values. More than one-third of respondents say 6 to 10% less land is coming to market than one year ago. Only 28% says it’s a similar amount.
Pasture acres showed stability. And Vegter notes a surprising strength in timber/non-tillable acres.
“Eight out of nine crop reporting districts showed an increase in values for non-tillable/timber acres, so there’s certainly a demand for recreational properties out there. Despite all the uncertainty through the fall, through the presidential election and in and the last few months, folks are still looking for rec ground,” he says.
