Ames, Iowa — Farmland value in northwest Iowa is a little lower this year than last year. That’s according to the annual Farmland Value Survey by Iowa State University.
Statewide, the survey reported a 3.7% increase to $11,835 per acre for average Iowa farmland values from November 2022 to November 2023. This represents a modest increase from last year, and the $11,835 per acre nominal land value is the highest-ever recorded by the survey.
The 2023 Iowa State University Land Value Survey revealed a geographic pattern in land value changes across crop reporting districts, counties, and land quality classes. Land values increased in eight of the nine crop reporting districts, with the largest percentage increases in the South Central and Southeast districts, 12.8% and 9.6%, respectively.
All other districts reported increases less than 5% except for the Northwest district, where land values decreased by 0.8%. Across land quality classes, low-quality land saw the greatest increase, 4%, while high- and medium-quality land experienced 3.5% and 3.8% increases, respectively.
In the last 12 years, northwest Iowa farmland has increased from an average of $8338 in 2011 to a high of $14,878 last year. This year it was down a little to $14,753, which is still pretty high. The early 2010s saw an early bump to an average price of over $10,000. But by 2014 and until 2021, average prices for an acre of average farmland stayed in the nine thousands. A jump up to $12,164 occured in 2021.
Drilling down to the county level, O’Brien County farmland is estimated to be at an average of $16,313 per acre this year, down from $16,531 last year. Osceola County is estimated at $14,170, down from $14,360 last year. Sioux County farmland is estimated at $16,521 per acre, up slightly from $16,515 last year. And an average acre of Lyon County farmland this year is estimated at $15,352, down from $15,557 last year.
