Land Auction Results Indicate a Stable Iowa Land Market

According to statewide auction results tracked by Iowa Appraisal and Research Corporation (Iowa Appraisal), indicators point to a stable Iowa land market in equilibrium.

Iowa Appraisal’s farm appraisal expert, Jim Rothermich, MAI, ARA, shares realtors he’s interviewed report a better than expected crop yield in 2019 was the primary reason for current stability. Market Facilitation Payments (MFP) and crop insurance helped. Also noted was a strong demand to purchase land by both farmers and investor buyers, historically low interest rates, stable cash rental rates, low supply for sale, and more optimism about trade in the later part of the year.

2019 Weighted average price for tillable farmland:           $8,404/acre
2019 Weighted average dollars per tillable CSR2 point:   $111
     Calculated over 61,059 tillable acres, 609 auctions focused on vacant and/or minimal improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

2018 Weighted average price for tillable farmland:           $8,378/acre
2108 Weighted average dollars per tillable CSR2 point:   $110
     Calculated over 62,095 tillable acres, 626 auctions focused on vacant and/or minimal improvements tracts of 30 acres and larger with tillable acres at 70% and higher.

Auctions/acres included in above data sample, by crop reporting district:

As shown in the table below, the largest variance in dollars per tillable CSR2 point was in the West Central District which increased 11.6% from $112/point in 2018 to $125/point in 2019.

About Iowa Appraisal and Research Corporation
Iowa Appraisal and Research Corporation 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.

For more information, contact:
Jim Rothermich, MAI, ARA
Iowa Appraisal and Research Corporation
thelandtalker@iowaappraisal.com
515.777.7083