Lower Iowa land prices
According to statewide auction results tracked by Iowa Appraisal and Research Corporation, data indicates Iowa land market prices have dipped slightly in the first six months of the year compared to 2019.
Jim Rothermich,Iowa Appraisal’s farm appraisal expert, reports the statewide weighted average price for tillable farmland is $108 per CSR2 point for the period January 1 through June 30, 2020, down 2.7% from $111 in 2019. The statewide weighted average price for tillable farmland from January 1 to June 30, 2020 is $8,091 per acre. The data suggests the market has softened slightly, but Iowa Appraisal deems the market to be stable. In March the COVID-19 disruption began to negatively affect global demand for commodities, and grain and livestock prices plummeted. Grain and livestock prices are highly correlated with land values, but other factors have kept Iowa land prices stable. According conversations with farm realtors, the land market has held on during the coronavirus pandemic due to82% of Iowa farmland carries no debt, land supplies are tight with few options for buyers,interest rates are historically low, there is strong interest in 1031 Exchanges, andland is viewed as a safe-haven investment when the stock market is volatile, which increases the demand for land.
Farm realtors state the demand to buy land far exceeds the supply for sale. They are also expecting an active fall selling season with ready, willing, and able buyers.
