Iowa State University recently released the results of its annual land value survey.
The survey actually showed that the average price of farmland in Iowa has declined nearly 4% across the state.
This might be surprising to some, given the fact that agricultural commodity prices and farm income are both down.
However, Melissa O’Rourke, a farm management specialist with Iowa State University Extension and Outreach, says the surprise is how little the farmland values did go down.
“When you talk about a surprise, the one surprise that might have been in that was that it wasn’t quite as much as some people were expecting,” says O’Rourke. “Last year in 2014, the ISU land value survey showed an eight-point-nine percent decrease in farmland values.
O’Rourke says the average price of land per acre across the state was listed at $7,633 per acre. However, many counties in northwest Iowa saw an increase in land values. She says the northwest Iowa crop reporting district, had land values average $9,685 per acre, which translates to a .7% increase.
O’Rourke says O’Brien county leads the way.
“O’Brien county actually saw a 1.69% increase, going from $10,699 to $10,881,” says O’Rourke.
Here is how it breaks down, according to O’Rourke:
- Osceola county also had a little bit of an increase for the same amount at 1.69%.
- Plymouth County had a little bit of a decrease at 2.07%.
- Woodbury County had close to a four percent decrease.
The Iowa State University Farm Management Specialist says Sioux County’s land value remained statistically steady and unchanged dropping only five dollars and acre from the $10,817 an acre in 2014 to $10,813 an acre in 2015.