Iowa Farmland Values Inch Up in Market Readjustment

When your school board votes, Decorah News is there to report. Chip in to keep your voice in the room. AMES, Iowa — The annual Iowa State University Land Value Survey found that average farmland values increased 0.7%, or $83, to $11,549 per acre. Although the nominal value rose over last year, it remains about $286 per acre below the 2023 peak of $11,835. Rabail Chandio, assistant professor and extension economist at Iowa State, oversees the annual survey. Chandio said she typically views changes under 5%, up or down, as adjustments rather than true market shifts. "Changes of that size often reflect variation across counties and crop reporting districts rather than a consistent statewide trend," she said. "It wasn't a boom or a bust, just a very uneven adjustment. Strong yields, limited land supply and solid livestock income helped prop up values in some areas, while lower commodity prices, high interest rates and rising costs pulled them down in others." When nominal values rise but inflation-adjusted values fall, the higher dollar amount can help farmers but only to a point, Chandio said. "A farmer selling land this year will receive more dollars than last year, supporting goals like paying down debt, transitioning to retirement or reinvesting elsewhere. In that sense, the higher nominal price provides some benefit," she said. However, she cautioned that inflation-adjusted proceeds may not stretch as far as before. "Sellers may find that the proceeds won't buy as much machinery, land or inputs as they would have a few years ago. While selling today can still improve a farmer's financial position, the real economic gain is smaller than the nominal increase suggests." Despite modest growth in farmland values, several factors weighed on the market this year. Chandio cited federal interest rates, which saw only modest cuts in 2025. "Because we haven't seen major reductions, the market still feels the impact of the rate hikes from 2022 and 2023. Interest-rate effects take years—up to a decade—to fully affect land values, so those post-COVID increases are still working through the system," she said. Commodity markets also pressured land prices. Chandio called commodity prices "soft" but said tariffs likely played only a small, indirect role. "Tariffs may have been background noise, but they weren't a major driver of farmland values. Farmers still face tight margins on commodities, even with lower production costs." She noted the market has become highly divided. "Even though the statewide average ticked up 0.7%, most counties saw declines after adjusting for inflation, and three crop reporting districts posted nominal drops. Meanwhile, parts of northeast Iowa saw increases of 3–4%, while some central Iowa areas slipped 2–3%." Land values by county Sixty counties reported increases in nominal land values; 78 counties reported declines in inflation-adjusted values. O'Brien County had the highest value at $16,269 per acre, up about $348, or 2.2%. Appanoose County had the lowest at $6,679 per acre, down $160, or 2.3%. Dubuque County had the largest dollar increase ($553 per acre), while Clayton and Allamakee counties saw the largest percentage increases (4.4%). Kossuth County had the largest percent decrease (-4.3%) and the largest dollar decline (-$552 per acre). Land values by district Six of Iowa's nine crop reporting districts saw increases. The Northwest district reported the highest average values at $14,522 per acre, and the South Central district the lowest at $7,623 per acre. The Northeast district had the largest percent and dollar increases (4.1%, $481 per acre). The North Central district saw the largest declines (-2.6%, -$315 per acre). Land values by quality Statewide, low-quality land averaged $7,580 per acre, up $130, or 1.7%. Medium-quality land averaged $10,809 per acre, up $69, or 0.6%. High-quality land averaged $14,030 per acre, up $101, or 0.7%. The Northwest district had the highest values across all qualities ($16,519 high, $13,507 medium, $9,792 low). The South Central district reported the lowest ($10,677 high, $7,465 medium, $5,199 low). Factors influencing the market Lower commodity prices were cited as a negative factor by 32% of respondents, the most common concern. Other negatives included long-term interest rates (22%) and tariffs or trade uncertainty (13%). Limited land supply was the most common positive factor (21%), followed by strong yields (13%) and cash or credit availability (10%). The 2025 Iowa State Land Value Survey, conducted in November by the Center for Agricultural and Rural Development and Iowa State Extension and Outreach, included 463 usable responses from 316 agricultural professionals. Sixty-nine percent of respondents completed the survey online. CARD also provides a web portal with charts and interactive county maps to examine land value trends over time. For more than 60 years, CARD has conducted public policy and economic research on agricultural issues, combining academic excellence with engagement to inform and benefit society. Stay connected and informed! Join the free newsletter for curated news, trending topics, and insider perspectives you won't find anywhere else.