Farmland values continue to climb

Farmland values in Iowa saw huge increases in value, mimicking increases in national farmland values.

The Iowa State University Land Value Survey, which has been gathering land value data since 1941, reported the average value of Iowa farmland climbed 17 percent from 2021 to 2022, to over $11,400 per acre. Adjusted for inflation, the new value surpassed the 2013 record price. 

Whendong Zhong, Economist, Cornell University: “But as if we have to point to one factor, it will be the much higher commodity prices that led to a you know, significant increase in farm income that they can use to bid on the land market as well.”

While inflation in the U.S. economy was part of the price increase, high commodity prices, limited land supply and low interest rates were the driving factors in the value growth. 

The Iowa State Survey reported even larger increases than the USDA Land Value Survey that was released in August of 2022. That report revealed 12.4 percent growth of all farmland in the U.S. and 14 percent growth of cropland in the country. Despite the average, a recent sale of 73 acres in Sioux County, Iowa topped $30,000 dollars per acre. 

The value of cropland in the U.S. has risen over 82 percent since 2008, to over $5,000 per acre.

For Market to Market, I’m Peter Tubbs.