Dr. Michael Duffy, Iowa State University Extension Economist

Dr. Michael Duffy, Iowa State University Extension Economist

Iowa Land Value Survey2013

Statewide Average

$8,716up 5.1%up $420

High Grade Land

$10,828up 6.3%up $646

Medium Grade Land

$8,047up 3.5%up $274

Low Grade Land

$5,298 up 3.5%up $179

Northwest

$10,960 up 2.8%up $83

high $12,824 med $9,918 low $6,845

down 3.9%down $445

North Central

$9,818 up 2.7%up $258

high $11,159 med $8,824 low $6,421

Northeast

$9,161 up 7.5%up $638

high $11,423 med $8,573 low $5,670

West Central

$9,449 up 2.5%up $233

high $11,591med $8,725low $5,926

Central

$9,877 up 5.5%up $512

high $11,803med $8,930low $5,918

East Central

$9,327up 10.8%up $906

high $11,631med $8,567low $5,449

Southwest

$7,531 up 7.4%up $517

high $9,591med $7,137low $4,592

South Central

$4,791 up 11.2%up $483

high $7,150med $4,715low $2,843

Southeast

$6,994 up 13.3%up $822

high $9,785med $6,605low $3,651

AVERAGE VALUESall grades 1950−2013

19501954

19581962

19661970

19741978

19821986

19901994

19982002

20062010

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

PERCENTAGE CHANGE from previous year, 1951−2013

-35%

-25%

-15%

-5%

5%

15%

25%

35%

AVERAGE VALUESadjusted for inflation

19501954

19581962

19661970

19741978

19821986

19901994

19982002

20062010

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000

$10,000

Inflation adj values

PERCENTAGE CHANGE adjusted for inflation

-35%

-25%

-15%

-5%

5%

15%

25%

35%

2013 AVERAGE VALUES

PERCENTAGE CHANGE

POSITIVE FACTORSaffecting land values

Intere

st ra

tes

Commodity pric

es

Good farm

economy

Land availa

bility

Cash availa

bleYields

Strong demand

-10%

0%

10%

20%

30%

40%

50%

60%

56%

37%

24%

15% 14% 13%11%

NEGATIVE FACTORS affecting land values

Low commodity prices

Weather Poor yields Govt programs Uncertainty Long term interest rates

0%

10%

20%

30%

40%

50%

60%

70%

80%

76%

21%

13% 11% 10% 10%

WHO PURCHASED farmland

Investors 18%

Existing Farmers

78%

New Farmers 3%

Others1%

WHO PURCHASED farmland

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Farmers Investors New Farmers Other

SALES ACTIVITYrelative to previous year

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0%

10%

20%

30%

40%

50%

60%

70%

More Less Same

sales activity from previous yearCHANGE IN

More – 9% Less – 59%Same – 33%

More – 16%Less – 53% Same – 31%

More – 16%Less – 48%Same – 36%

More – 8%Less – 71%Same – 20%

More – 20% Less – 45%Same – 35%

More – 18% Less – 40%Same – 41%

More – 15%Less – 47%Same – 38%

More – 20%Less – 43%Same – 37%

More – 19%Less – 29%Same – 52%

SUMMARY• 5.1% increase is 9th out of last 10 years

• Except for 2009 first single digit increase since 2003

• Rate of increase slowed throughout the year mimicking drop in crop prices

• NW Iowa showed actual declines in value

• Gross farm income will be the factor to watch for future directions

For more information, visit

www.extension.iastate.edu/topic/landvalue