Unlocking the Value of Iowa Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - February 2025 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:
Creighton University Rural Mainstreet Index: Farmland Prices and Economic Trends – February 2025 Update
Iowa Farmland Prices: Current Snapshot
The latest Creighton University Rural Mainstreet Index (RMI) reveals continued economic struggles for rural communities across a 10-state agricultural region, including Iowa. In February 2025, the overall RMI dropped to 38.0 from 42.3 in January, remaining below the growth-neutral threshold of 50.0 for the 17th time in 18 months.
Farmland Prices and Economic Pressures
Farmland prices across the region continue to decline due to elevated interest rates, high input costs, and below-breakeven grain prices. The region’s farmland price index fell to 40.0, its lowest since October 2024. In Iowa, the farmland price index also declined, sinking from 41.3 in January to 38.1 in February.
Grain & Livestock Outlook
While 70.8% of bankers expect livestock producers to see positive cash flow in 2025, only 54.2% believe grain farmers will break even or turn a profit. Grain prices have improved slightly but remain too low for widespread profitability.
Farm Equipment & Lending Trends
- Farm equipment sales remain weak, with the index rising slightly to 18.2 but still far below growth neutral, reflecting tight credit conditions and weak farm incomes.
- Loan volume rose to 60.4, showing increased borrowing activity, while CD and savings deposit indexes also climbed due to higher interest rates.
Confidence & Hiring Remain Low
Rural bankers remain pessimistic about economic growth, with the confidence index falling to 40.0 in February. Hiring also declined, with Iowa’s new hiring index dropping from 46.2 in January to 40.8.
Iowa Agriculture & Trade
Despite economic challenges, Iowa’s agricultural exports increased by $30.2 million (2.0%) in 2024 compared to 2023. Mexico remained Iowa’s largest trading partner, accounting for 63.4% of total state ag and livestock exports.
With ongoing pressure from interest rates, input costs, and grain price volatility, Iowa farmland values continue to face downward pressure. Monitoring these trends will be essential for landowners, investors, and producers navigating 2025.
Contact us for a free market analysis of farms that have recently sold in your area at 515-537-6633 or [email protected]
For more detailed information, visit the Creighton University Rural Mainstreet Economy page.
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]
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 February, a total of 4,320.04 acres of 80% of more tillable farmland was sold in Iowa by auction
- The current average per acre price for land in Iowa according to February Auction sales is $12,583 per acre
- The highest selling farm in Iowa for the month sold on the 19th in Hardin County for $17,788,338.
- This farm was sold by the auction method for $13,800 per acre and was 1,289 acres of farmland which has a soil score rating of 78 CSR2 calculating to be $177/CSR point.
- The highest dollars per acre farm in Iowa that sold this month went to an 39.7 acre tillable farm in Plymouth County which sold for $22,600 per acre on Feb 6th, 2025 by auction. This farm has a 79.3 CSR2 which totals to be $285/CSR2.
- See full results from all tracts of farmland that sold in table at end of the page.
- See how these averages compared to last month and a year ago below in next section below to see trend line history.
Current Farmland Prices in Iowa: A 12-Month Overview
Check out the accompanying graph for insights into Iowa farmland prices over the past year. In February, the average price per tillable acre (for farms with 80% or more tillable land) rose from $12,235/acre to $12,583/acre. A year ago, the average was $12,869/acre.
The 12-month rolling average price per acre in Iowa now stands at $11,785/acre.
If you’re considering selling your farm, reach out to us for an expert opinion on its current market value.
Monthly Number of Acres Sold At Auction 80% or more Tillable Farms
The volume of acres sold at auction increased slightly from January to February. In Februaury, 4,320.04 acres were sold, compared to last month, January had 4,076.61 acres. A year ago, 4,525.55 acres sold in the month of February. If you’re considering selling, now is a great time to start the conversation. Our team is here to guide you through the process and help you make informed decisions. Get started today by completing this form, and one of our experienced auctioneers or land brokers will be in touch with you soon!
Monthly Iowa Auction Results: Average Price Per CSR2 Point
The average price per CSR2 point of $158 decreased $9 from January to February. Comparatively, the price per CSR2 point was $187 a year ago. The 12-month rolling total for Iowa is $167/CSR2 point. This metric of soil productivity calculation 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.
DreamDirt’s Recently Sold Farmland February Auction Results:
The auction for 49.49 acres of Farmland in Boone County, IA was conducted by DreamDirt Farm & Land Auctions as a timed online auction on February 12th. The property was offered as one tract, and located North East of Boone, IA on Highway 17. The farm was sold to a beginner farmer in the area!
- 49.49 acres sold for $14,100 per acre or $173.01/CSR2
The auction for 65.5 acres Farmland in Webster County, IA was conducted by DreamDirt Farm & Land Auctions on February 12th as well by timed online auction. Farm is open for the 2025 crop season giving the new buyer opportunity to farm it this year. Located between Humboldt and Fort Dodge. Local farmer buyer on this auction!
- 65.5 acres sold for $11,960/acre or $162.28/CSR2
This auction showcased the strong demand for high-quality Iowa farmland, with buyers seizing opportunities for expanding operations and investment potential.
The auction for 94.79 acres of Farmland in Cerro Gordo County, IA was conducted by DreamDirt Farm & Land Auctions as a timed online auction which closed on February 19th. Located in North Central Iowa near Mason City with an average CSR2 rating of 87.
- Final Sale Price: $13,575 per acre
- CSR2 Price Per Point: $156.21
This auction highlighted the continued demand for high quality, productive farmland in North Central Iowa, reflecting strong land values for farms with solid soil ratings.
Recently Sold Land in Iowa Price Results
| Date | County | Acres | $/acre | Tillable Acres | % Tillable | CSR2 | $/CSR2 | Total |
|---|---|---|---|---|---|---|---|---|
| 2/4/2025 | Fayette | 75.44 | $10,200 | 60.00 | 79.53 | 89.2 | $114 | $769,488 |
| 2/4/2025 | Fayette | 154.50 | $11,900 | 154.80 | 100.19 | 84.4 | $141 | $1,838,550 |
| 2/6/2025 | Plymouth | 39.70 | $22,600 | 37.73 | 95.04 | 79.3 | $285 | $897,220 |
| 2/7/2025 | Washington | 72.00 | $8,850 | 67.64 | 93.94 | 60.4 | $147 | $637,200 |
| 2/10/2025 | Tama | 170.00 | $11,250 | 158.80 | 93.41 | 85.7 | $131 | $1,912,500 |
| 2/11/2025 | Fremont | 156.00 | $10,800 | 142.04 | 91.05 | 81.2 | $133 | $1,684,800 |
| 2/11/2025 | Sioux | 77.06 | $17,200 | 71.80 | 93.17 | 90.7 | $190 | $1,325,432 |
| 2/11/2025 | Hardin | 77.96 | $14,800 | 77.61 | 99.55 | 85.9 | $172 | $1,153,808 |
| 2/12/2025 | Boone | 49.49 | $14,171 | 47.99 | 96.97 | 81.5 | $174 | $701,323 |
| 2/12/2025 | Calhoun | 160.00 | $13,300 | 156.87 | 98.04 | 86.9 | $153 | $2,128,000 |
| 2/12/2025 | Webster | 65.50 | $12,013 | 65.50 | 100.00 | 73.7 | $163 | $786,852 |
| 2/19/2025 | Greene | 160.00 | $16,000 | 149.77 | 93.61 | 85.9 | $186 | $2,560,000 |
| 2/19/2025 | Greene | 101.25 | $11,700 | 95.57 | 94.39 | 77.1 | $152 | $1,184,625 |
| 2/19/2025 | Greene | 54.79 | $9,800 | 53.48 | 97.61 | 62.5 | $157 | $536,942 |
| 2/19/2025 | Cerro Gordo | 94.79 | $13,628 | 94.79 | 100.00 | 86.9 | $157 | $1,291,798 |
| 2/19/2025 | Hardin | 1,289.01 | $13,800 | 1,289.01 | 100.00 | 78 | $177 | $17,788,338 |
| 2/19/2025 | Hardin | 61.44 | $16,000 | 63.71 | 103.69 | 86.8 | $184 | $983,040 |
| 2/20/2025 | Guthrie | 24.37 | $7,800 | 22.85 | 93.76 | 82.4 | $95 | $190,086 |
| 2/20/2025 | Guthrie | 71.41 | $16,100 | 68.67 | 96.16 | 89 | $181 | $1,149,701 |
| 2/20/2025 | Guthrie | 234.13 | $15,800 | 227.26 | 97.07 | 87 | $182 | $3,699,254 |
| 2/20/2025 | Guthrie | 80.00 | $15,800 | 79.51 | 99.39 | 88.9 | $178 | $1,264,000 |
| 2/20/2025 | Guthrie | 226.00 | $14,200 | 226.00 | 100.00 | 88.5 | $160 | $3,209,200 |
| 2/21/2025 | Wright | 77.84 | $12,200 | 74.25 | 95.39 | 81.3 | $150 | $949,648 |
| 2/21/2025 | Wright | 88.23 | $10,900 | 85.88 | 97.34 | 76.9 | $142 | $961,707 |
| 2/21/2025 | Monona | 158.00 | $8,950 | 156.08 | 98.78 | 59.4 | $151 | $1,414,100 |
| 2/24/2025 | Monona | 94.70 | $8,000 | 80.00 | 84.48 | 58.1 | $138 | $757,600 |
| 2/24/2025 | Monona | 78.25 | $5,425 | 68.68 | 87.77 | 57 | $95 | $424,506 |
| 2/24/2025 | Monona | 107.42 | $14,000 | 107.42 | 100.00 | 84.4 | $166 | $1,503,880 |
| 2/25/2025 | Madison | 80.00 | $10,000 | 72.22 | 90.28 | 71.6 | $140 | $800,000 |
| 2/26/2025 | Pottawattamie | 140.76 | $10,300 | 138.68 | 98.52 | 68.1 | $151 | $1,449,828 |
| Totals/Averages | 4,320.04 | $12,583 | 4,194.61 | 95.64 | 78.96 | $158 | $55,953,426 |
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.