DES MOINES — According to statewide auction results tracked by Iowa Appraisal, Iowa land prices are down 1.7% in six months based on price per CSR2 point.
Jim Rothermich, MAI, ARA, ALC, Iowa Appraisal’s farm appraisal expert, reports market conditions have been remarkably steady over the last six months. The statewide weighted average price for tillable farmland is $175 per CSR2 point for the period January 1 through June 30, 2023, down slightly from $178 per CSR2 point on December 31, 2022.
The average price per acre for the same period decreased from $13,742 (with a weighted average CSR2 point of 77.2) to $13,385 (with a weighted average CSR2 point of 76.5).
January 1 – June 30, 2023
Statewide – Iowa
Tillable acres 32,290
Weighted average CSR2 76.5
Average price/tillable acre $13,385
Sale price/CSR2 $175
# of auctions 356
- Calculated over 32,290 acres, 326 auctions focused on vacant and/or minimal
improvements tracts of 30 acres and larger with tillable acres at 80% and higher.
Year to year June 30, 2022, to June 30, 2023, there was a 3.3% decrease in price per CSR2 point. The June 30, 2022, average price per CSR2 point was $181, and average price per tillable acre was $13,852 (with a weighted average CSR2 point of 76.5). Market conditions were remarkably steady.
Reasons for stable market conditions:
• Market adjusted to economic conditions in 3rd Quarter 2022 and stabilized.
• Market has adjusted to historically high input prices.
• Extreme grain market volatility — farmers have potential to have a profitable 2023.
• Still large amounts of cash in rural areas looking to buy land.
• Inflation has not affected land values due to farmers having liquidity.
• Buyers have strong equity positions.
• 80% of Iowa farmland carries no debt.
About Iowa Appraisal
Iowa Appraisal provides agricultural and commercial real estate appraisals, appraisal reviews, market and feasibility studies, as well as research and consulting services throughout the Midwest: www.iowaappraisal.com. Business valuation, merger and acquisition consulting, and litigation support services are provided by BCC Advisers: www.bccadvisers.com.