Positive Growth in Iowa Farmland Values: A 3.5% Increase in 2023

Today, on December 12th, the eagerly awaited findings of the 2023 ISU Land Value Survey were unveiled. This annual report has been a staple since 1950, providing valuable insights into Iowa’s farmland values across all 99 counties. The survey is a key resource for understanding the dynamics of land prices in the state and how they evolve year after year.

Compiled by a diverse group of professionals, including auctioneers, real estate land agents, farm appraisers, and farm managers, the survey revealed a small uptick. From November 2022 to November 2023, Iowa witnessed a 3.5% increase in land prices. This translates to a $424 per acre rise, bringing the average price of Iowa Farmland to $11,835 per acre.

It’s crucial to note that the ISU Land Value Survey is an opinion survey, not a direct reflection of actual sale prices. Despite this, it serves as a valuable indicator of the sentiment among industry experts, offering a comprehensive view of the trends shaping Iowa’s agricultural landscape. The positive growth observed in 2023 underscores the resilience and strength of Iowa’s farmland market.

What is Farmland Worth in Iowa?

Curious about the worth of farmland in Iowa? The recently released survey provides a comprehensive breakdown.

According to the findings, high-quality land in Iowa commands an impressive $14,296 per acre. In comparison to 2022, high-quality cropland in the state has experienced a 3.5% increase, equating to a substantial $479 per acre increase.

For medium-quality land, the rise is even more pronounced, with a 3.8% increase translating to an average of $11,075 per acre—a notable increase of $401. Even low-quality land saw a positive shift from 2022, reaching an average price of $7,664 per acre. This marks a 4% increase or $296 per acre.  Overall, adjusting for inflation, farmland prices in the 2023 survey were only 0.5% higher than 2022.

2023 was an up and down market.  After 46% price appreciation in Iowa farmland during 2021 and 2022 the train was likely to slow down.  Iowa land prices were pressured by higher interest rates and lower commodity price in 2023. We saw a definite reduction in overall demand at least in numbers of buyers, however enough buyers remained in the market to achieve market prices at or above 2022.  Will this trend intensify into 2024?  It seems likely given demand reductions became more noticeable toward the end of the year.

These figures highlight the nuanced dynamics of Iowa’s farmland market, where the recent trends suggest a softening in the land market. While the upward trajectory might have slowed down in 2023, the resilience observed across various land qualities indicates the ability of Iowa’s agricultural sector to adapt and navigate changing market conditions.

Average Dollars Per Acre Price of Farm and Land in Iowa

To the right you will see a map and data table below of the current average dollars per acre price of each county in Iowa.

The average value of land actually dropped in the highest value counties across the state of Iowa.  Notably Northwest Iowa experienced the highest number of counties with losses in land value in Lyon, O’Brien, Osceola, Dickinson, Emmet, Clay and Buena Vista.  East Central Iowa had 4 counties Linn, Jones, Cedar, Clinton and the highest loss in the state Scott County at -3.9%

We would be happy to provide you with a market analysis to help you understand the value of your farm! Whether you’re ready to start the selling process, or even remotely curious, we will gladly provide this to you! Please fill out this form and our team will get the process started!