(Des Moines) The average price for bare, unimproved farmland rose 7.8 percent, according to the latest March 2021 Land Trends and Values Survey from the REALTORS Land Institute. The increase is a statewide average for September 2020 to March 2021.
According to the press release, the increase follows a period of 12 months that featured farmland values virtually unchanged across the state. The increase in farmland values is the result of a surge in Net Farm Income, Government support payments in 2020, rallying commodity prices to five-year highs, low-interest rates, and a deficient supply of quality farms being offered to the market.
The Northern Tier of Crop Reporting Districts showed the greatest strength, ranging from an 8.3% to a 9.6% increase in cropland values. The Southern Tier showed the most modest gains ranging from 6.2% to 6.6% from September 2020 to March 2021.
The average price of high-quality farmland in southwest Iowa is $8,046.00 per acre, and the average price of high-quality farmland in west-central Iowa is $9,775.00 per acre.
Timber and Pasture acres showed similar strength, boasting a 7.9% increase to Timberland values and a 6.5% to Pastureland values.
REALTORS® Land Institutes – Iowa Chapter farmland value survey has been conducted in March and September since 1978. This survey plus the RLI Farm and Ranch Multiple Listing Service are activities of REALTORS® specializing in agricultural land brokerage daily.
