Unlocking the Value of Iowa Farmland: A Comprehensive Guide to Current Land Prices and Expert Insights - January 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:
Rural Mainstreet Index (RMI) – January 2025 Update
Iowa Farmland Prices: Current Snapshot
The farmland market continues to face downward pressure as economic conditions in rural America remain challenging. According to the latest Creighton University Rural Mainstreet Index, farmland prices have declined for the eighth time in the past nine months, reflecting the strain of high input costs, low grain prices, and elevated interest rates. Bank CEOs in the survey project that approximately one in five grain farmers will experience negative cash flow in 2025, making profitability difficult despite a slight improvement in commodity prices. Additionally, farm equipment sales have dropped for the 18th consecutive month, signaling a cautious approach to capital investment.
Iowa has not been immune to these economic struggles. The state’s RMI for January fell to 40.7 from 41.7 in December, and its farmland price index dipped slightly to 41.3. While Iowa’s hiring index saw a small increase, the state’s agricultural exports declined by $25.1 million in 2024 compared to the previous year, marking a 1.6% reduction. Mexico remained Iowa’s top export destination, accounting for 65.2% of total state agricultural and livestock exports.
Future of Iowa Land Prices in 2025
Looking ahead, the future of Iowa farmland prices will largely depend on factors such as commodity price recovery, interest rate adjustments, and input cost stabilization. While some optimism remains around recent grain price improvements, they have not yet reached levels that ensure profitability for all producers. Elevated borrowing costs continue to challenge farmers looking to expand operations or upgrade equipment, potentially limiting land demand in the short term. However, if interest rates ease later in 2025 and farm incomes stabilize, demand for farmland could see renewed strength. Additionally, strong livestock markets and Iowa’s central role in agricultural exports could provide some support to land values, particularly in areas with high-quality soils and strong rental demand. For now, uncertainty remains a key theme, and farmland sellers may need to adjust pricing expectations in response to ongoing economic pressures. 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.
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 January, a total of 4,076.61 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 January Auction sales is $12,235 per acre
- The highest selling farm in Iowa for the month sold on the 24th in Monona County for $2,286,825.
- This farm was sold by the auction method for $7,500 per acre and was 304.91 acres of farmland which has a soil score rating of 62 CSR2 calculating to be $121/CSR point.
- The highest dollars per acre farm in Iowa that sold this month went to an 80 acre tillable farm in Lyon County which sold for $21,700 per acre on Jan 15th, 2025 by auction. This farm has a 67.6 CSR2 which totals to be $321/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.
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]
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 January, the average price per tillable acre (for farms with 80% or more tillable land) rose from $11,668/acre to $12,235/acre. A year ago, the average was $11,598/acre.
The 12-month rolling average price per acre in Iowa now stands at $11,709.46/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 decreased from December to January. In December, 7,007.08 acres were sold, while January saw a drop to 4,076.62 acres—down from 4,551.67 acres in January of last year. 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 $167 increased $3 from December to January. Comparatively, the price per CSR2 point was $177.47 a year ago. The 12-month rolling total for Iowa is $169.13/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 January Auction Results:
The auction for 232.77 acres of farmland in Butler County, Iowa, was conducted by DreamDirt Farm & Land Auctions as a timed online auction on January 2nd. The property was offered in three tracts, all enrolled in the Conservation Reserve Program (CRP), highlighting its value for conservation and sustainable agricultural use.
- Tract 1 sold for $9,000 per acre
- Tract 2 sold for $10,600 per acre
- Tract 3 sold for $12,000 per acre
The auction for 239.5 acres of farmland in Pocahontas County, Iowa, was conducted by DreamDirt Farm & Land Auctions on Jan 21st. This exceptional family farm presented a rare opportunity for investors, farmers, and homesteaders, offering four diverse tracts with productive farmland and a homestead.
- Tract 1 – 39.5 Acres with Homestead: Includes a house, barns, grain bins, and various depreciable assets. This unique opportunity for a beginning farmer or homesteader sold for $12,550 per acre.
- Tract 2 – 80 Acres: Nearly 100% tillable with excellent soil, ideal for row crop farming. Sold for $12,600 per acre, totaling approximately $1,008,000.
- Tract 3 – 80 Acres: Another high-quality tillable parcel, open for the 2025 crop season. Sold for $12,750 per acre, totaling approximately $1,020,000.
- Tract 4 – 40 Acres: Premium farmland with an 86.3 CSR2 rating and a cash rent lease generating $11,550 per year through 2027. Sold for $13,000 per acre, totaling $520,000.
This auction showcased the strong demand for high-quality Iowa farmland, with buyers seizing opportunities for expanding operations and investment potential.
The auction for 75.18 acres of farmland in Fremont County, Iowa, was conducted by DreamDirt Farm & Land Auctions as a timed online auction closing on January 29, 2025. This high-quality farm, featuring a CSR2 rating of 70.3, attracted strong interest from bidders.
- Final Sale Price: $9,350 per acre
- CSR2 Price Per Point: $133.00
This auction highlighted the continued demand for productive farmland in southwest 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 |
|---|---|---|---|---|---|---|---|---|
| 01/02/2025 | Butler | 79.27 | $9,032.00 | 70.11 | 88.44 | 80.4 | $112.00 | $715,967.00 |
| 01/02/2025 | Woodbury | 53 | $6,900.00 | 47.91 | 90.40 | 81.9 | $84.00 | $365,700.00 |
| 01/02/2025 | Butler | 74.02 | $12,034.00 | 68.95 | 93.15 | 83.7 | $144.00 | $890,757.00 |
| 01/02/2025 | Butler | 79.48 | $10,631.00 | 75.83 | 95.41 | 88.3 | $120.00 | $844,952.00 |
| 01/08/2025 | Plymouth | 76.62 | $15,100.00 | 70.94 | 92.59 | 67.6 | $223.00 | $1,156,962.00 |
| 01/08/2025 | Plymouth | 39.6 | $20,600.00 | 39.6 | 100.00 | 90 | $229.00 | $815,760.00 |
| 01/09/2025 | Winneshiek | 160 | $10,600.00 | 146.77 | 91.73 | 68.9 | $154.00 | $1,696,000.00 |
| 01/10/2025 | Harrison | 80 | $8,700.00 | 64.37 | 80.46 | 44.5 | $196.00 | $696,000.00 |
| 01/10/2025 | Harrison | 104.43 | $10,900.00 | 84.53 | 80.94 | 59.2 | $184.00 | $1,138,287.00 |
| 01/10/2025 | Woodbury | 81.33 | $14,000.00 | 80.97 | 99.56 | 77.6 | $180.00 | $1,138,620.00 |
| 01/15/2025 | Winneshiek | 29.71 | $9,333.00 | 26.28 | 88.46 | 50.3 | $186.00 | $277,283.00 |
| 01/15/2025 | Winneshiek | 104.77 | $11,475.00 | 95.71 | 91.35 | 59.8 | $192.00 | $1,202,236.00 |
| 01/15/2025 | Winneshiek | 79.94 | $14,025.00 | 73.17 | 91.53 | 69.2 | $203.00 | $1,121,159.00 |
| 01/15/2025 | Des Moines | 48.99 | $13,750.00 | 46.14 | 94.18 | 76.6 | $180.00 | $673,613.00 |
| 01/15/2025 | Lyon | 80 | $21,700.00 | 77.41 | 96.76 | 67.5 | $321.00 | $1,736,000.00 |
| 01/16/2025 | Franklin | 91.27 | $14,900.00 | 89.14 | 97.67 | 92.1 | $162.00 | $1,359,923.00 |
| 01/16/2025 | Franklin | 155.7 | $13,500.00 | 155.19 | 99.67 | 93.1 | $145.00 | $2,101,950.00 |
| 01/16/2025 | Des Moines | 77 | $9,675.00 | 77 | 100.00 | 56.7 | $171.00 | $744,975.00 |
| 01/21/2025 | Pocahontas | 39.5 | $12,638.00 | 36.5 | 92.41 | 85.5 | $148.00 | $499,201.00 |
| 01/21/2025 | Pocahontas | 40 | $13,000.00 | 38.53 | 96.33 | 86.3 | $151.00 | $520,000.00 |
| 01/21/2025 | Pocahontas | 80 | $12,644.00 | 79 | 98.75 | 82.8 | $153.00 | $1,011,520.00 |
| 01/21/2025 | Pocahontas | 80 | $12,794.00 | 79.87 | 99.84 | 83.7 | $153.00 | $1,023,520.00 |
| 01/22/2025 | Shelby | 136 | $10,500.00 | 118.95 | 87.46 | 63.5 | $165.00 | $1,428,000.00 |
| 01/22/2025 | Clay | 76.2 | $14,400.00 | 74 | 97.11 | 89.4 | $161.00 | $1,097,280.00 |
| 01/23/2025 | Davis | 93.51 | $11,800.00 | 78 | 83.41 | 53.2 | $222.00 | $1,103,418.00 |
| 01/23/2025 | Jasper | 160 | $7,600.00 | 147.52 | 92.20 | 53.2 | $143.00 | $1,216,000.00 |
| 01/23/2025 | Davis | 117.7 | $13,000.00 | 114 | 96.86 | 53.5 | $243.00 | $1,530,100.00 |
| 01/23/2025 | Clay | 73.7 | $15,800.00 | 72 | 97.69 | 95.2 | $166.00 | $1,164,460.00 |
| 01/23/2025 | Clay | 78.8 | $16,800.00 | 77.56 | 98.43 | 95.5 | $176.00 | $1,323,840.00 |
| 01/23/2025 | Page | 149.3 | $10,100.00 | 149.3 | 100.00 | 74.3 | $136.00 | $1,507,930.00 |
| 01/24/2025 | Hamilton | 120 | $11,600.00 | 117.36 | 97.80 | 71.6 | $162.00 | $1,392,000.00 |
| 01/24/2025 | Monona | 304.91 | $7,500.00 | 302.24 | 99.12 | 62 | $121.00 | $2,286,825.00 |
| 01/27/2025 | Lyon | 45.98 | $11,900.00 | 40.7 | 88.52 | 69.5 | $171.00 | $547,162.00 |
| 01/28/2025 | Sioux | 80 | $19,400.00 | 77.73 | 97.16 | 88.3 | $220.00 | $1,552,000.00 |
| 01/29/2025 | Fremont | 75.18 | $9,377.00 | 71.34 | 94.89 | 70.3 | $133.00 | $704,963.00 |
| 01/30/2025 | Jasper | 160 | $6,900.00 | 137.39 | 85.87 | 49.7 | $139.00 | $1,104,000.00 |
| 01/30/2025 | Taylor | 77.59 | $5,800.00 | 68 | 87.64 | 48.6 | $119.00 | $450,022.00 |
| 01/30/2025 | Buchanan | 30 | $10,050.00 | 26.85 | 89.50 | 72.3 | $139.00 | $301,500.00 |
| 01/30/2025 | O'Brien | 77.12 | $18,500.00 | 74.96 | 97.20 | 93 | $199.00 | $1,426,720.00 |
| 01/30/2025 | Buchanan | 40 | $14,100.00 | 39.57 | 98.93 | 89.1 | $158.00 | $564,000.00 |
| 01/30/2025 | Buchanan | 155 | $12,700.00 | 154.81 | 99.88 | 88.4 | $144.00 | $1,968,500.00 |
| 01/31/2025 | Montgomery | 77.3 | $6,500.00 | 63.28 | 81.86 | 64.8 | $100.00 | $502,450.00 |
| 01/31/2025 | Montgomery | 113 | $7,600.00 | 109.45 | 96.86 | 68.6 | $111.00 | $858,800.00 |
| 01/31/2025 | Sioux | 100.69 | $18,500.00 | 98.16 | 97.49 | 86.5 | $214.00 | $1,862,765.00 |
| Totals/Averages | 4,076.61 | $12,235.00 | 3,837.09 | 93.76 | 73.78 | $167.00 | $49,878,991.00 |
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.