Unlocking the Value of Iowa Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - December 2023 Report
Welcome to Our Monthly Iowa Farmland Value Report
In this monthly report, we dive into Iowa farmland values, helping you understand the factors that determine what your farm is potentially worth. Our goal as auctioneers and farmland real estate agents is to provide you with up-to-date information, recent sales data, expert insights, and tips for maximizing the potential value of your farmland sale. Let us answer the questions you have about selling farmland in Iowa. Contact us today for a free consultation.
Understanding Iowa Farmland Values:
Factors Influencing Farmland Values in Iowa
Iowa’s agricultural landscape is influenced by a multitude of factors. In this blog, we will explore how commodity prices, interest rates, government policies, and regional conditions impact the current market values.
Recent Farmland Sales Data
Let’s dive into the latest sales data, including county location, land size by acre amount, soil productivity ratings, and sale prices per acre and total price in the table below. By analyzing this data, you can get a clearer picture of how your property may be valued in the current market.
Current Average Price Per Acre of Farmland in Iowa
- In the month of December, a total of 9.286.09 acres of land was sold in Iowa by auction
- The current average per acre price for land in Iowa according to December Auction sales is $11,898.70 per acre
- The highest selling farm in Iowa in the month of December 2023 sold on December 20th in Polk County for $15,900 per acre.
- This farm was sold by the auction method and was 233.96 acres of farmland which has a soil score rating of 88.2 CSR2 calculating to be $180.27/CSR point on a 96.94% tillable farm in Northwest Iowa.
- See full results from all 216 tracts of farmland that sold in table at end of the page.
- See how these averages compared to November and a year ago below in next section below to see trend line history.
Jason J Smith
Auctioneer & Land Broker
Jason is an experienced farmland broker and auctioneer with extensive experience in farmland sales across this Midwest. Jason has worked with hundreds of clients to create advantageous outcomes. If you are selling land schedule a consultation with Jason by calling or using the calendar.
Phone: 515-537-6633 Email: [email protected]
Market Trends and Future Projections:
Iowa Land Market Trends
Each month we like discuss current trends in Iowa farmland sales, highlighting patterns, emerging opportunities, and potential challenges. December was still a strong month but it’s not hard to see there are declines across Iowa. We can see strength in one place and weakness in another and it can flip flop the next week. I’ve watched farm equipment auctions which are plentiful this time of year and see prices that are lower than I’d expect on some things, higher on others. This very likely has to do with each buyers individual caution and situation. I think you could call this volatility but it isn’t a bad time to sell land. In fact, we know where we are at at this time and we don’t know where we will be in 6 months. As we head into the 2024 crop season we’ll begin the entire game over again, looking for support in land prices, hope in lower interest rates and an exceptional crop here in the Midwest!
Current Farmland Prices in Iowa: A 12-Month Overview
Explore the accompanying graph to gain insights into the average farmland prices in Iowa over the past year. In December, the average price per acre dropped to $11,898.70, the lowest it’s been since March of earlier this year. Comparatively, the average price per acre was $12,657.13 in December 2022. If you’re contemplating selling your farm, feel free to reach out to us for an expert opinion on its current market value.
Reach out to us for an opinion on what we think your farm is worth if you are considering selling.
December Iowa Auction Results: Average Price Per CSR2 Point
The price per CSR2 point has seen a slight decline from November, dropping to $160.22/CSR2 point. Comparatively, the price per CSR2 point was $164.61 a year ago. This metric plays a crucial role in determining the overall value of your farm. If you’re unsure about your farm’s CSR2 soil rating, don’t hesitate to contact us for a soil map and evaluation, especially if you’re considering selling land in Iowa.
December Iowa Auction Results: Decline in Acres Sold
The volume of acres sold in December dropped notably from last month, which was a record high for the year at 20,774.87 acres sold in one month. In December, 9,268.09 acres sold at auction, which is less than half of the acres sold in November. Although a steep decline from last month, the yearly analysis shows an overall increase of acres sold for 2023. If you’re contemplating selling, now is an opportune time to connect with us and delve into the details of the process. Initiate the process today by completing this form, and one of our experienced auctioneers or land brokers will reach out to you promptly!
Future Predictions for Farmland Values
Here you will gain insights into the future of Iowa’s farmland market with our expert forecasts. Understand what to expect in the coming months and years. Here’s what we are predicting:
In December, we concluded a farmland auction in Sac County, achieving a final bid just shy of $20,000 per acre and $210 per CSR2 Point. This serves as evidence that high-quality farms continue to command top prices in Iowa’s market. Notably, the result surpassed our previous sale in the same township a few months ago by $1,300. Despite challenges such as lower commodity prices, increased interest rates, and an overall worsening economy, top-tier farms have maintained their position at the pinnacle of the market.
Farms of moderate and lower quality, as observed, have deviated from the peak prices witnessed a year ago. Although there remains a substantial demand for these farms, the level of competition has diminished. However, there is still sufficient competition to meet the expectations of sellers in the market.
The monthly Rural Mainstreet Report provides a thorough analysis of the overall farm economy. In the December report, the following summary was highlighted.
• For a fourth straight month, the overall Rural Mainstreet Index sank below growth neutral.
• Farm loan delinquencies decreased to 0.1% over the past six months.
• More than half of bank CEOs expect a 2024 recession.
• According to the International Trade Administration, the export of agriculture products from the region declined from $14.1 billion for the first ten months of 2022 to $12.0 billion for the same period in 2023 for a 14.7% slump.
The Rural Mainstreet Report conducts a state-by-state analysis, and its findings for Iowa in December are noteworthy. The Iowa RMI surged from 32.4 in November to 45.5, while the farmland price index climbed from 62.0 in November to 64.0. Additionally, the new hiring index for November increased to 45.1 from 44.2 in October. However, there are concerning trends in Iowa’s agricultural exports, as reported by the International Trade Administration, showing a 29.3% decline from $1.8 billion in the first ten months of 2022 to $1.3 billion for the same period in 2023. James Brown, CEO of Hardin County Savings Bank in Eldora, highlighted the financial challenges faced by farmers, stating, “Almost all farmers have lost working capital with little to no gain in net worth. Lower crop yields and prices are the major causes, along with our few customers who have cattle and/or hogs.”
Observing the data, it’s evident that certain indicators have decreased, while others have surpassed the growth-neutral threshold. This dynamic presents a kind of teeter-totter situation for the farm economy. Although the future trajectory of interest rates remains uncertain, the current scenario, with more job opportunities than available workforce, suggests that the recent rate increases haven’t yet yielded the intended impact on the economy, signaling that the Federal Reserve may continue to consider further interest rate hikes in the future.
The best money available with the lowest interest rates today is the Beginning Farmer Loan program who can borrow at about 1/2 the interest rate of a regular market consumer. This may be an opportunity for some sellers to work with Beginning Farmers who sit in a better borrowing position and for some sellers, you might consider contract financing to buyers where you can better control the rate of interest and not take the entire capital gain at one time.
While some aspects may pose uncertainties, we have the expertise to guide you effectively through the sales process, ensuring you achieve the best possible results. If you’re contemplating the sale of farmland, we’re here to assist you in evaluating your situation and farm, providing a clear path to a successful farmland sale.
Navigating the Selling Process:
Tips for Selling Your Farm in Iowa
Explore a set of practical tips for successfully selling your farmland by downloading our free eBooks here. Schedule a non obligatory consultation with us today and we will cover everything from when is the best time to sell, a customized marketing plan, sales methods, how we can help you find the right buyer, and answer your questions.
Farm Real Estate Experts in Iowa
Meet our team of Iowa farm real estate and auction experts who can provide you with valuable guidance and personalized assistance throughout the selling process. If you’re looking to uncover the true value of your Iowa farm or are considering selling, don’t hesitate to reach out to our experienced team. We’re here to provide you with a customized plan to meet your goals. Contact us today to get started.
Assessing Your Farm’s Worth:
Iowa Land Market Analysis Appraisal Technique
Curious what your farm could sell for? We prepare market analysis for each of our farmland sellers to help you discover and learn what your farm is worth from our market based research and expertise. Fill out our form here to request a market analysis of your Iowa farmland.
| County | Total Acres | Price Per Acre | Tillable Acres | % Tillable | CSR2 | $ per Tillable CSR2 | Total Price | Date Sold |
|---|---|---|---|---|---|---|---|---|
| Harrison | 116.72 | $7,700.00 | 58.42 | 50.05 | 67.2 | $114.58 | $898,744.00 | 12/1/23 |
| Harrison | 74.25 | $8,000.00 | 53.91 | 72.61 | 70.7 | $113.15 | $594,000.00 | 12/1/23 |
| Butler | 77.81 | $21,000.00 | 77.81 | 100.00 | 86.4 | $243.06 | $1,634,010.00 | 12/1/23 |
| Louisa | 116.21 | $11,500.00 | 112.47 | 96.78 | 78.6 | $146.31 | $1,336,415.00 | 12/4/23 |
| Woodbury | 133.5 | $11,200.00 | 130.48 | 97.74 | 64.6 | $173.37 | $1,495,200.00 | 12/4/23 |
| Mills | 206.38 | $8,050.00 | 148.8 | 72.10 | 51.4 | $156.61 | $1,661,359.00 | 12/5/23 |
| Johnson | 122.84 | $6,750.00 | 74 | 60.24 | 38 | $177.63 | $829,170.00 | 12/6/23 |
| Linn | 110 | $6,550.00 | 59 | 53.64 | 47.2 | $138.77 | $720,500.00 | 12/6/23 |
| Plymouth | 149.63 | $16,000.00 | 149.63 | 100.00 | 86.8 | $184.33 | $2,394,080.00 | 12/6/23 |
| Floyd | 39.42 | $5,224.00 | 20.8 | 52.77 | 63.3 | $82.53 | $205,930.08 | 12/6/23 |
| Sac | 147.95 | $19,870.00 | 147.95 | 100.00 | 94.6 | $210.04 | $2,939,766.50 | 12/6/23 |
| Emmet | 150 | $12,500.00 | 144.2 | 96.13 | 82.2 | $152.07 | $1,875,000.00 | 12/6/23 |
| Delaware | 147.35 | $12,100.00 | 143.58 | 97.44 | 62.5 | $193.60 | $1,782,935.00 | 12/6/23 |
| Delaware | 139.28 | $15,200.00 | 122.81 | 88.17 | 80.7 | $188.35 | $2,117,056.00 | 12/6/23 |
| Delaware | 80 | $16,000.00 | 75.26 | 94.08 | 86.6 | $184.76 | $1,280,000.00 | 12/6/23 |
| Buchanan | 36.88 | $14,000.00 | 34.89 | 94.60 | 56.9 | $246.05 | $516,320.00 | 12/6/23 |
| Buchanan | 39 | $18,500.00 | 39 | 100.00 | 88.6 | $208.80 | $721,500.00 | 12/6/23 |
| Buchanan | 75.58 | $14,100.00 | 75.58 | 100.00 | 82.8 | $170.29 | $1,065,678.00 | 12/6/23 |
| Shelby | 69.7 | $15,400.00 | 64.66 | 92.77 | 61.4 | $250.81 | $1,073,380.00 | 12/7/23 |
| Montgomery | 46.24 | $15,000.00 | 40.11 | 86.74 | 76 | $197.37 | $693,600.00 | 12/7/23 |
| Ringgold | 229.05 | $7,000.00 | 184.06 | 80.36 | 67.6 | $103.55 | $1,603,350.00 | 12/7/23 |
| Ringgold | 77.72 | $6,500.00 | 69.68 | 89.66 | 51.8 | $125.48 | $505,180.00 | 12/7/23 |
| Kossuth | 77 | $17,900.00 | 76.71 | 99.62 | 87.3 | $205.04 | $1,378,300.00 | 12/7/23 |
| Butler | 153.57 | $8,600.00 | 145.15 | 94.52 | 80.3 | $107.10 | $1,320,702.00 | 12/7/23 |
| Monona | 78.46 | $4,700.00 | 75.47 | 96.19 | 52.5 | $89.52 | $368,762.00 | 12/8/23 |
| Keokuk | 80 | $13,600.00 | 76.77 | 95.96 | 81.8 | $166.26 | $1,088,000.00 | 12/8/23 |
| Kossuth | 144.5 | $10,400.00 | 143.16 | 99.07 | 80.1 | $129.84 | $1,502,800.00 | 12/12/23 |
| Boone | 75.81 | $15,400.00 | 75.81 | 100.00 | 86.9 | $177.22 | $1,167,474.00 | 12/12/23 |
| Muscatine | 79.11 | $13,750.00 | 78.53 | 99.27 | 85.7 | $160.44 | $1,087,762.50 | 12/12/23 |
| Muscatine | 184.87 | $8,000.00 | 141.87 | 76.74 | 77.3 | $103.49 | $1,478,960.00 | 12/12/23 |
| Muscatine | 74.72 | $10,900.00 | 68 | 91.01 | 82.9 | $131.48 | $814,448.00 | 12/12/23 |
| Muscatine | 77.91 | $9,150.00 | 46.43 | 59.59 | 84.5 | $108.28 | $712,876.50 | 12/12/23 |
| O'Brien | 249.86 | $13,000.00 | 235.1 | 94.09 | 94.7 | $137.28 | $3,248,180.00 | 12/12/23 |
| Marshall | 104 | $16,700.00 | 99.27 | 95.45 | 88.9 | $187.85 | $1,736,800.00 | 12/12/23 |
| Buena Vista | 115.74 | $13,550.00 | 107.17 | 92.60 | 90 | $150.56 | $1,568,277.00 | 12/12/23 |
| Adams | 79 | $8,700.00 | 72 | 91.14 | 75.9 | $114.62 | $687,300.00 | 12/12/23 |
| Adams | 74.6 | $6,900.00 | 68.5 | 91.82 | 69.3 | $99.57 | $514,740.00 | 12/12/23 |
| Page | 17.68 | $6,250.00 | 16.62 | 94.00 | 51.6 | $121.12 | $110,500.00 | 12/13/23 |
| Butler | 39 | $16,905.00 | 38.93 | 99.82 | 89 | $189.94 | $659,295.00 | 12/13/23 |
| Plymouth | 160 | $18,200.00 | 153.18 | 95.74 | 85.2 | $213.62 | $2,912,000.00 | 12/14/23 |
| Adams | 75.76 | $6,600.00 | 52.11 | 68.78 | 55.2 | $119.57 | $500,016.00 | 12/14/23 |
| Montgomery | 217 | $10,200.00 | 197 | 90.78 | 73.5 | $138.78 | $2,213,400.00 | 12/15/23 |
| Montgomery | 95 | $9,700.00 | 87 | 91.58 | 73.9 | $131.26 | $921,500.00 | 12/15/23 |
| Page | 192.03 | $8,400.00 | 147 | 76.55 | 71.7 | $117.15 | $1,613,052.00 | 12/15/23 |
| Mitchell | 232 | $15,200.00 | 226.33 | 97.56 | 88.5 | $171.75 | $3,526,400.00 | 12/15/23 |
| Dubuque | 200 | $17,100.00 | 145.51 | 72.76 | 70.6 | $242.21 | $3,420,000.00 | 12/15/23 |
| Crawford | 158 | $8,100.00 | 134.08 | 84.86 | 53.2 | $152.26 | $1,279,800.00 | 12/16/23 |
| Sioux | 49 | $23,600.00 | 47.4 | 96.73 | 90.1 | $261.93 | $1,156,400.00 | 12/18/23 |
| Sioux | 35 | $18,600.00 | 34.21 | 97.74 | 89.2 | $208.52 | $651,000.00 | 12/18/23 |
| Sac | 182.85 | $13,600.00 | 175.55 | 96.01 | 81.5 | $166.87 | $2,486,760.00 | 12/18/23 |
| Grundy | 89.51 | $9,400.00 | 79.51 | 88.83 | 82.2 | $114.36 | $841,394.00 | 12/19/23 |
| Calhoun | 183.9 | $13,000.00 | 181.08 | 98.47 | 84.9 | $153.12 | $2,390,700.00 | 12/19/23 |
| Lee | 25.1 | $17,561.00 | 21.35 | 85.06 | 69.6 | $252.31 | $440,781.10 | 12/19/23 |
| Webster | 99 | $13,700.00 | 98.26 | 99.25 | 81.1 | $168.93 | $1,356,300.00 | 12/19/23 |
| Boone | 108.79 | $10,800.00 | 71.09 | 65.35 | 67 | $161.19 | $1,174,932.00 | 12/19/23 |
| Boone | 105.33 | $13,800.00 | 102.12 | 96.95 | 82.5 | $167.27 | $1,453,554.00 | 12/19/23 |
| Winneshiek | 183 | $14,700.00 | 179.78 | 98.24 | 74.8 | $196.52 | $2,690,100.00 | 12/19/23 |
| Winnebago | 72.37 | $13,860.00 | 73.15 | 101.08 | 85.9 | $161.35 | $1,003,048.20 | 12/23/23 |
| Winnebago | 146.02 | $11,261.00 | 143.46 | 98.25 | 82.7 | $136.17 | $1,644,331.22 | 12/20/23 |
| Fayette | 77 | $8,700.00 | 73.61 | 95.60 | 83 | $104.82 | $669,900.00 | 12/20/23 |
| Fayette | 107.47 | $12,700.00 | 106.32 | 98.93 | 87.5 | $145.14 | $1,364,869.00 | 12/20/23 |
| Carroll | 138.26 | $12,100.00 | 111.05 | 80.32 | 86.6 | $139.72 | $1,672,946.00 | 12/20/23 |
| Boone | 43.61 | $26,200.00 | 40.26 | 92.32 | 88.6 | $295.71 | $1,142,582.00 | 12/20/23 |
| Polk | 233.96 | $15,900.00 | 226.81 | 96.94 | 88.2 | $180.27 | $3,719,964.00 | 12/20/23 |
| Union | 190 | $9,450.00 | 187 | 98.42 | 76.4 | $123.69 | $1,795,500.00 | 12/21/23 |
| Harrison | 146.34 | $10,046.00 | 128.3 | 87.67 | 57.7 | $174.11 | $1,470,131.64 | 12/21/23 |
| Harrison | 89.25 | $7,100.00 | 56.55 | 63.36 | 46.5 | $152.69 | $633,675.00 | 12/21/23 |
| Harrison | 37.62 | $11,800.00 | 36.53 | 97.10 | 53.9 | $218.92 | $443,916.00 | 12/21/23 |
| Muscatine | 119.74 | $15,425.00 | 118 | 98.55 | 82.9 | $186.07 | $1,846,989.50 | 12/21/23 |
| Mahaska | 38.5 | $6,850.00 | 25 | 64.94 | 62.8 | $109.08 | $263,725.00 | 12/21/23 |
| Mahaska | 258 | $6,800.00 | 202.4 | 78.45 | 70.8 | $96.05 | $1,754,400.00 | 12/21/23 |
| Mahaska | 135 | $7,000.00 | 104.5 | 77.41 | 62.8 | $111.46 | $945,000.00 | 12/21/23 |
| Franklin | 218 | $7,100.00 | 172.28 | 79.03 | 70.3 | $101.00 | $1,547,800.00 | 12/22/23 |
| Franklin | 139 | $9,200.00 | 129.38 | 93.08 | 79.5 | $115.72 | $1,278,800.00 | 12/22/23 |
| Franklin | 80 | $10,700.00 | 79 | 98.75 | 82 | $130.49 | $856,000.00 | 12/22/23 |
| Clayton | 76.81 | $11,500.00 | 69.8 | 90.87 | 57.7 | $199.31 | $883,315.00 | 12/27/23 |
| Clayton | 29.23 | $10,600.00 | 27.21 | 93.09 | 36.2 | $292.82 | $309,838.00 | 12/27/23 |
| Clinton | 52 | $10,526.00 | 49.66 | 95.50 | 72.4 | $145.39 | $547,352.00 | 12/28/23 |
| Clinton | 63.3 | $9,765.00 | 63.35 | 100.08 | 54 | $180.83 | $618,124.50 | 12/28/23 |
| Franklin | 96 | $12,100.00 | 94.86 | 98.81 | 83.1 | $145.61 | $1,161,600.00 | 12/29/23 |
| Franklin | 38 | $9,500.00 | 37.56 | 98.84 | 77.9 | $121.95 | $361,000.00 | 12/29/23 |
| Adams | 160 | $4,700.00 | 104.56 | 65.35 | 51.5 | $91.26 | $752,000.00 | 12/29/23 |
| STATEWIDE TOTALS | 9,268.09 | $11,898.70 | 8,185.75 | 88.91 | 73.90 | $160.22 | $107,103,246.74 |