GRAPHIC VIA ISU EXTENSION A graphic shows the average price of an acre of farmland across all 99 Iowa counties, with the 2024 number on top and the 2023 figure below it. Within the T-R coverage area of Marshall, Tama, Grundy and Hardin counties, the average dipped in keeping with a state trend.

AREA — The Iowa State University Extension and Outreach office has released its annual land values survey, and for the first time since 2018, the overall statewide average has decreased by just over three percent, from $11,835 in November of 2023 to $11,467 in November of 2024.

Within the T-R coverage area, the trends are similar: the average value of an acre in Marshall County fell from $12,404 in 2023 to $11,919 in 2024 (a 3.9 percent drop); in Tama County, the average fell from $12,406 in 2023 to $12,042 in 2024 (a 2.9 percent drop); in Grundy County, which typically has one of the highest average values in the area, the number fell from $14,231 in 2023 to $13,793 last year (a 3.1 percent drop); and in Hardin County, the figure fell from $13,353 to $13,003 (a 2.6 percent drop).

O’Brien County in far northwest Iowa still has the highest average value at $15,921 per acre, while Appanoose County along the state’s southern border is the lowest with an average value of $6,840 per acre. Despite the overall numbers, several of the counties along Iowa’s southern edge actually saw slight increases in value and bucked the statewide trend.

A report accompanying the survey mentions several “negative factors” that could be behind the drop in farmland values, including the fall of commodity prices, interest rate hikes, higher input costs, cash and credit availability, weather uncertainty, inflation and uncertainty in profitability.

Hatting

Patrick Hatting, a farm management specialist with the ISU Extension who serves 12 central Iowa counties including Marshall, Tama and Grundy, agreed that the dip in commodity prices, with corn currently averaging $4.31 per bushel and soybeans at $9.39, was a driving force behind the drop in land values. He added that events such as the derecho of 2020 and changes in trade policy can have a major effect on the overall economic picture, and Price Loss Coverage (PLC) payments could be triggered based on the average price of a covered commodity dipping below the established price — $4.01 for corn and $9.26 for soybeans.

“That’s where we’re at. Like I said, when this stuff came out a year ago, people thought ‘There’s no way.’ Well, there is because we’re here,” Hatting said. “As a general rule, (land is) a stable thing to invest in, and it holds its value even though land values are going down. It still holds its value from an investment perspective. (But) if somebody buys it and then they rent it out, they’re probably not getting an exceptional investment rate.”

For reference, he said, the stock market historically provides about a 10 percent return on investment rate, but for land rentals, that figure is closer to two or three percent.

“It’s a thing where, yeah, you’re not gonna really lose money, but it’s not that sexy where you’re gonna be at a cocktail party going ‘Oh yeah, let me tell you about my two to three percent.’ That’s just not gonna be the case,” Hatting said.

The 2023 average was the highest in the history of the survey, and the figure jumped a massive 29 percent from 2020 to 2021.

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Contact Robert Maharry at 641-753-6611 ext. 255 or rmaharry@timesrepublican.com.