Iowa farmland values edged up slightly this year, but the gains were uneven — and in parts of southeast Iowa, landowners likely felt more pressure than growth.
The annual Iowa State University Land Value Survey shows the statewide average farmland value rose less than one percent to about $11,550 an acre, a modest increase economists describe as a market “readjustment,” not a boom. After adjusting for inflation, most counties actually saw values slip.
In southern and southeastern Iowa, land prices remain among the lowest in the state. Appanoose County posted Iowa’s lowest average value at about $6,700 an acre, down more than two percent from last year. The broader South Central district, which overlaps much of southern Iowa, continues to trail other regions, with average land values well below the state average.
ISU economist Rabail Chandio says strong crop yields and limited land for sale helped support prices in some areas, but lower commodity prices, high interest rates and tight farm margins weighed more heavily on others — including much of southern Iowa. She notes that while sellers may receive slightly higher dollar amounts than last year, inflation means that money doesn’t go as far.
Overall, the survey shows a divided land market, with stronger increases in northeast Iowa and weaker conditions in the south. For southeast Iowa farmers and landowners, the message is stability rather than growth, as the farmland market continues to adjust to higher interest rates and softer commodity prices.
For more information, watch the Land Value Survey press conference.