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Survey shows Iowa farmland values have stabilized

A survey of Iowa farmland values shows prices have stabilized, at least temporarily.

The survey of realtors, conducted by the Iowa Chapter of REALTORS Land Institute, showed a 0.9 percent increase in ag land values over the past six months.

We asked Kyle Hansen of Nevada, Iowa-based Hertz Real Estate, who coordinates the biannual survey, if this slight increase might represent a turnaround in the three-year decline in Iowa land values.

“Right now, I think it could go both ways. I think we’re going to be seeing a little more sideways movement—some volatile sales, both high and low, in similar areas,” Hansen says. “One thing that is for sure, there are very few farms available and there is extremely high demand.

“Maybe the land market is only taking a breather to find out the future direction it wishes to go—and that’s going to be dependent on net revenues that can be generated through commodity prices and yield.”

Hansen says they have seen increased interest from investors in recent months, but farmers continue to be the buyers more than 70 percent of the time.

Hansen says Iowa farmland values are down 25 to 30 percent from their peaks in September of 2013.

AUDIO: Kyle Hansen