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Signs of weakening farmland values

Several indicators point to weakening farmland values.

Jim Rothermich with Iowa Appraisal tells Brownfield he tracks every land auction in the state and says there were at least nine no-sales in February.

“That is a drastic increase. A year ago, February 2023, we had two. So that’s how big a difference there is right now.”

A no-sale occurs when the property isn’t sold because a reserve price has not been met.

He says lower commodity prices and high interest rates are having the biggest impact on farmland values.

Another sign of a softening market can be found when checking ag land listings.

“The amount of listings has (gone) up, there’s more days on the market for those listings, and there’s more price reductions than I’ve seen in the past couple of years.”

Rothermich says there are still strong sales, including a tract in northwest Iowa that recently sold for $29,600, but he’s confident this is a softening period similar to ten years ago.