Land Trends & Values - Iowa Chapter of REALTORS® Land Institute 03.21.18
Posted on March 22, 2018 at 4:47 PM by Jim Rothermich
Iowa Farmland Values Increase from September 2017.
Cropland values are up statewide for the September 2017 to March 2018 period, according to the Iowa Chapter of REALTORS® Land Institute Land Value Survey released on March 21, 2018.
The twice-yearly survey of farm real estate professionals finds Iowa farmland values edged higher in the six-month period ending March 1. The survey, conducted by the Iowa Chapter of REALTORS® Land Institute (RLI), found on average, tillable crop rose 2.9% from September 2017 to March 2018. Combining this increase with the 2.0% increase reported in September 2017 indicates a statewide average increase of 4.9% for the year from March 1, 2017 to March 1, 2018.
The survey indicated the average tillable cropland price in March 2018 was $6,951/acre. In March 2017, the average tillable cropland price was $6,545/acre. The highest value was in March 2013 at $8,690/acre, which indicates a 20% decline in tillable cropland from the peak.
The survey indicates positive factors contributing to current farmland values including: good yields in 2017, limited amount of land on the market, cheap interest rates, improved commodity prices and profits in the stock market being used to make land purchases. The negative factors indicated in the survey include: low commodity prices, tight operational capital, lower rents, interest rates increasing, farm bill uncertainty, and trade uncertainty.
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“That’s my story and I’m sticking to it!” Please check back next week to see what the Iowa land market is doing.
Jim “the Land Talker”
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