The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of 2.0% for tillable cropland values from March 2017 to September 2017 period. Combining this increase with the 0.9% reported in September 2016 indicates a statewide average increase of 2.9% for the year from September 1, 2016 to September 1, 2017.
In our east central district, high quality cropland is selling at $9,903 per acre, or at the second highest rate in the state. Timber is selling at $2,237 per acre. Overall, the increase in our district was 3.6% – or the highest in the state of Iowa.
“It is positive to see land prices on the rise,” said Eric Schlutz, ALC, Realtor and manager of the Ruhl&Ruhl Realtors Muscatine Office. “This will stabilize prices but we are still cautiously optimistic because there are a lot of other factors that will continue to affect land values in our region.”
“I wasn’t surprised to see the results of the most recent land survey as land prices have stabilized and even trended upward this past year especially for the higher and upper medium quality cropland,” said Dennis Stolk, ALC, Realtor. “The increase in prices is somewhat driven by a scarcity of available land for sale in many areas, as well as low interest rates and continued good buyer demand. Farmer still remain in a strong equity position and have cash on hand and are looking to buy. Moving forward, our land market will continue to be sensitive to what happens with commodity and livestock prices and its impact on farm income.”
For the survey, participants are asked to estimate the average value of farmland as of September 1, 2017. These estimates are for bare, unimproved land with a sale price on a cash basis.
Ruhl Farm&Land, a division of Ruhl&Ruhl Realtors, is focused on the sale, purchase and marketing of land, farms and acreages. For more information, and the price per acre of cropland in all nine Iowa districts, visit RuhlLand.com.
|
Part of Iowa |
High-Quality Crop Land |
Medium-Quality Crop Land |
Low-Quality Crop Land |
Percent Change in Tillable Cropland |
Non-Tillable Pasture |
Timber Per Acre |
|
East Central |
9,903/acre |
7,284/acre |
4,494/acre |
+3.6% |
2,769/acre |
2,237/acre |
|
Northeast |
9,358/acre |
6,955/acre |
4,318/acre |
2,605/acre |
||
|
Southeast |
9,431/acre |
6,089/acre |
3,743/acre |
2,207/acre |