Iowa farmland values show stability with some deviations
Special to the Times Vedette
Farmland values in Iowa remain stable according to the latest Benchmark Farm Value Trends Report issued by Farm Credit Services of America (FCSAmerica). While sales activity has slowed, cropland is showing pockets of strength.
“While the market remains stable overall, there are instances of significant deviations in sales prices, both above and below expectations,” said Tim Koch, FCSAmerica executive vice president of business development. “Prices above expectations are anomalies and don’t represent the broader trend.”
“While many of today’s buyers are well-positioned financially and capable of exceeding expected prices, most sales remain flat,” Koch added. “Buyers are increasingly cautious with their working capital, waiting for the right opportunities. This selectivity is driving a reduction in sales, with buyers focusing on high-quality, strategically located land.”
Interest rates are not expected to have a significant impact on the market, according to Koch. “Margins and availability of capital will play a more crucial role in influencing buyer behavior.”
Addressing pastureland trends, Koch said: “The pastureland market has strengthened in some areas, driven by profitability of the cow-calf sector. However, rising prices may lead some buyers to reduce herd sizes rather than expand their holdings, reallocating those funds to options with higher earning potential.”
State-by-State Comparisons
Over the last six months, the average of the benchmark value changes ranged from -2.8% to 5.7% with an overall average of 0.9%. The 12-month value changes ranged from -5.1% to 9.5% with an overall average of 1.6%. The major factors affecting the agricultural real estate market are lower commodity prices, profitability in the cattle market and limited supply of real estate for sale. Farmers and ranchers continue to be the predominant buyers.
|
State |
Six-Month |
One-Year |
Two-Year |
Five-Year |
Ten-Year |
|
Iowa (21) |
-2.8% |
-5.1% |
-4.8% |
52.6% |
38.6% |
|
Nebraska (18) |
-0.6% |
-0.4% |
7.3% |
52.8% |
27.1% |
|
South Dakota (22) |
5.7% |
9.5% |
18.1% |
64.6% |
40.5% |
|
Wyoming (2) |
0.0% |
2.7% |
5.9% |
54.5% |
110.5% |
|
Average % Change |
0.9% |
1.6% |
7.0% |
56.9% |
38.3% |
*The chart above shows the average change in values by state based on FCSAmerica’s twice-a-year appraisals of 63 benchmark farms.
Below is a state-by-state summary of benchmark values for cropland and pastureland over the past six and 12 months.
- Iowa: Cropland values decreased -3.4% over the past six months and -6.9% over the past 12 months.
- Nebraska: Over the last six months, cropland values decreased -0.6% and -0.2% over the last 12 months. Pastureland values saw a modest increase of 0.4% over 12 months.
- South Dakota: Values for cropland increased 2.5% over the past six months and 3.6% over the past year. Pastureland in the state showed the strongest growth across the Associations, rising by 10.4% over six months and 21.6% over 12 months.
- Wyoming: Cropland values were stable over the past 6 months and increased 4.4% over the past year. Pastureland values rose by 1% over 12 months.
For more information on this report and land values, visit https://www.fcsamerica.com/resources/learning-center/latest-land-values.