Iowa State Land Survey Recap 2019 – Iowa Farmland Values

Starting in 2019, Iowa farmland values were falling 2%-3.5% in counties across Iowa dating back to 2018. The increase is due mostly from interest rate hikes and tariff pressures that arose in the middle of 2018. If those two factors started to arise in the beginning of 2018, that number may have doubled. Farmland auction sales in the fall of 2018 were tough, it seemed like fewer operators and investors wanting to purchase a farm. This gave us an uncertain feeling on how the farmland value market would react to this news in 2019. Fast forward to the start of 2019, the feds made announcements of regression in interest rates due to the market backfire. Government tariff payments to Iowa farmers has lessened the burden of farmer’s 2019 income stress in farming operations which has also played a factor keeping stability in the land market. To get more information about Iowa land values, click the link for the 2019 Iowa State Extension 2019 land values report – https://www.card.iastate.edu/farmland/isu-survey/2019/

A Rise in 2019 Iowa FarmLand Values

The 2019 growing season was, for most farmers, a year to remember. What started off with one of the wettest spring planting seasons on record, left farmers with many sleepless nights and stresses of getting crops planted. In return, that gave a chance for growers to capitalize on emotional USA commodity importers being able to market corn at a better value during the spring months of 2019, ending in more profits for farmers. While tariffs were still in play, Trump continued his efforts to relieve the pressures of the soybean market which also helped stabilize the land market when farmland was offered to the open market.

Recap Of The 2019 Farmland Sale Market

Overall, we have seen a steady trend in Iowa farmland values in 2019 in Iowa. We think it is fair to mention the quality of farmland brought to market in 2019 was higher quality than it was in 2018 which played the biggest factor in the 1% to 5% increase in land values over all counties in Iowa. We also saw a slight increase in farm incomes over the past 12 months generated from a strong corn run in the summer months along with a couple rounds of MFP payments for local producers. The northeast Iowa region was the only region in Iowa where farmland values pulled back in the negatives from 2018. One major reason was the negative pressure the dairy market has been dealing with in recent years.

Iowa FarmLand Values Outlook for 2020

There are some positives still out there on the short term that could help keep land values stable for 2020. Ag lenders are working with rates 1% to 1.25% lower than in 2018 which, in return, has put more interest in the buying side of farmland. A recent “phase 1” of a trade agreement should help keep values at or above current values; if the projection of 40-50 billion in agricultural related purchases stay true in each of the next two calendar years. Lastly, farm incomes are projected to increase across the corn belt in 2020. With 2020 being an election year, this can lead to some uncertainty that we will have to keep an eye on as to how that will play out.

Iowa Land Company Farm Real Estate Brokers and Land Auctioneers

For more information about land values in Iowa, farm real estate, and upcoming land auctions. Visit our website at iowalandcompany.com

If you’re considering selling farmland, reach out to one of our Land Brokers at Iowa Land Company. It’s important to first understand your farms current value, take a look at how aggressive the local operators are within your farms location is, and then come up with a plan how to yield the absolute most value out of your farm. To get the process started contact Iowa Land Company headquarters at P: (515) 962-5048 or E: info@iowalandcompany.com