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2025 Iowa State University Land Value Survey

The 2025 Iowa State University Land Value Survey, directed by Dr. Rabail Chandio, reflects a market that is essentially "holding ground." While nominal values showed a slight increase, the growth was marginal.

 

Top Takeaways

  • Iowa farmland values rose slightly (+0.7%) to $11,549/acre in 2025.

  • Inflation-adjusted values fell 1.8%, reflecting real market softening.

  • Market conditions are mixed: strong yields and limited supply support prices, while low commodity prices, high interest rates, and rising costs push them down.

  • Geographic variation is significant: Northeast and East Central districts saw the strongest gains; North Central and Central saw the largest declines.

  • Sales activity remains low, with 42% of respondents reporting fewer sales than last year.

  • Long-term outlook is optimistic, with 82% expecting higher values over five years.

 

Statewide Land Value Trends

  • Average value (all qualities): $11,549/acre (+0.7%).

  • Nominal values remain 32.5% above the 2013 peak, but 2.4% below 2023.

  • Real (inflation-adjusted) values are 4.3% below 2013 and 7.2% below 2023.

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Regional Patterns

  • Highest-value district: Northwest ($14,522/acre).

  • Lowest-value district: South Central ($7,623/acre).

  • Largest increases:

    • Northeast (+4.1%)

    • East Central (+3.4%)

    • Northwest (+2.9%)

  • Largest declines:

    • North Central (–2.6%)

    • Central (–2.0%)​

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County-Level Highlights

  • Highest-value county: O’Brien ($16,269/acre).

  • Lowest-value county: Appanoose ($6,679/acre).

  • Largest % increase: Clayton & Allamakee (+4.4%).

  • Largest % decrease: Kossuth (–4.3%).

  • 39 of 99 counties saw nominal declines; 78 counties saw real (inflation-adjusted) declines.​​

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Land Quality Trends

  • High-quality land: $14,030/acre (+0.7%).

  • Medium-quality land: $10,809/acre (+0.6%).

  • Low-quality land: $7,580/acre (+1.7%), with the strongest gains in northern and southeastern districts.

 

Market Forces

   Positive influences

  • Limited land supply (most cited)

  • Strong yields

  • Cash reserves & credit availability

  • Investor demand

  • Livestock sector strength

   Negative influences

  • Lower commodity prices (top concern)

  • High interest rates

  • Rising input costs

  • Trade uncertainty

  • Limited working capital

   Sales Activity

  • 42% reported fewer sales than 2024.

  • 17% reported more sales.

  • 55% of land sold came from estate sales; 22% from retired farmers.

  • 68% of purchases were by existing farmers (mostly local).

  • Investors purchased 26% of farmland (highest in South Central district).

 

Expectations & Forecasts

   One-year outlook

  • 41% expect land values to fall.

  • 31% expect increases.

  • Most expect changes within ±5%.

   Five-year outlook

  • 82% expect increases, with many predicting 10–20% growth.

   Crop price forecasts

  • Corn: $4.25 (2026) → $4.96 (2030)

  • Soybeans: $10.53 (2026) → $11.96 (2030)

   Interest Rates (2025)

  • 20-year farmland mortgage: 6.77% (state average)

  • 1-year operating loan: 7.64%

 

Overall Interpretation

   The 2025 farmland market is best described as a year of adjustment:

  • Nominal values are stable to slightly higher.

  • Real values are declining.

  • Sales activity is subdued.

  • Market pressures (low prices, high rates) are counterbalanced by strong yields, limited supply, and investor interest.

  • Long-term sentiment remains strongly optimistic.​

Cornfield At Sunset
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