2016 ISU Farmland Survey Shows Third Year of Decline
Posted on 12/15/2016 at 08:00 AM by Jim Rothermich
The 2016 Iowa State farmland value survey was released on December 13, 2016. I will briefly discuss the findings of the survey. Average Iowa farmland value has shown decline for the third year in a row. The first time since the 1980’s farm crisis. The average statewide value for farmland is now estimated at $7,183/acre which represents a 5.9% drop in value in all land quality types (low, medium, high quality). The statewide per acre value declined $450, since November 2015. Farmland values hit a historic high in 2013, but have steadily declines since then. The statewide average value for an acre of farmland is now about 17.5 percent lower than 2013 values.
Northwest Iowa was the highest land value for a region of the state at $9243 per acre while south central Iowa had the lowest land values by region at $4241 per acre. Scott County again had the highest land value at $10,335 per acre and Decatur County was again the lowest at $3443 per acre.
The largest decrease in Iowa farmland values was in Plymouth and Sioux Counties at $747 per acre and the highest percentage decrease was in Monona County at 8.4%
Based on land quality low quality land typically 0-33 CSR averaged $4645 per acre with a 3.5% decrease for a loss of $169 per acre. Medium quality land typically 34-66 CSR averaged $6705 per acre and lost 5.9% value for $294 per acre. High quality land, all land above 66 CSR averaged $8758 which was a decrease of 6.5% or $606 per acre loss in value.
This report is a based on 2016 sales but shows us the pattern moving toward 2017. The last 2 annual reports along with this year's report have shown declines of 8.9% (2014) 3.9% (2015) and 5.9% in 2016.
“That’s my story and I’m sticking to it!”
Jim “the Land Talker”
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