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Slight decline in Iowa farmland values

Iowa farmland values saw a slight decline over the past year, according to the latest Iowa State University land value survey.

The drop of eight-tenths of one percent (.8) is the fourth decline in Iowa land values in the past five years—and farmland prices are now off 17 percent from their peak in 2013. But ISU ag economist Wendong Zhang, who coordinates the survey, says prices have stabilized over the past two years.

“Yes, we are seeing downward pressure. We are seeing modest declines,” Zhang says. “But, overall, we are seeing stabilizing land markets. There’s no sign of sudden collapse.”

Zhang says pressure from low commodity prices is being offset by strong yields and a limited supply of land for sale.

“Given what we’re seeing now, a replay of the 1980’s farm crisis is highly unlikely,” he says.

The average price of Iowa farmland is 7,264 dollars per acre, ranging from 8,863 for high quality land to 4,609 for low quality land.