Just a year ago I shared that Iowa farmland values had fallen for the first time in a number of years. Iowa State University is out with their 2015 farmland values survey and for the second year in a row, the average value of an acre of farmland has dropped.
Those of you outside of Iowa may wonder why this is material for a personal finance blog, but I’m based in Iowa and you wouldn’t believe how many of my clients are holding acres here. Clients inherit land regularly from the previous generation and hold on to it for a number of reasons. Our job is to help clients manage it as a portion of their entire holdings, which is why I find this annual study so interesting.
This year’s survey, which ISU has been tracking since 1941, showed that Iowa farmland fell by 3.9% ($310/acre) from last year. The average price of Iowa farmland is now about $7,633/acre. That is almost 13% lower than 2013’s high price of $8,716/acre.
Despite dropping for the third year since the economic recovery began in 2009, farmland values in Iowa are still twice what they were 10 years ago.
If you’re still with me, here are were some other interesting facts quoted from the report:
- Decatur County had the lowest average value per acre at $3,514, a drop of $73, or about 2 percent, from last year’s report.
Scott County reported the highest value at $10,918 per acre, however, values there declined about $700 per acre, higher than this year’s statewide average, and just over 6 percent from last year.
The district with the highest overall farmland value is Northwest Iowa at $9,685 per acre. The lowest is South Central at $4,397 per acre.
The only district to show an increase in values as a whole was Northwest Iowa, which reported values 0.7 percent higher than last year. Clayton and Allamakee Counties, located in the Northeastern portion of the state, reported the largest percentage increases with a 2.9 percent gain.
In the 2015 survey, over 75 percent of respondents thought land values in their territory would continue to decline next year.
Follow the source link below for more information on the study’s methodology and even more Iowa farmland facts.
Source: 2015 Iowa Land Value Survey