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2012. Iowa Land Value Survey. Dr. Michael Duffy, Iowa State University Extension Economist. Statewide Average. $8,296. up 23.7% up $1,588. High Grade Land. $10,181. up 24.2% up $1,983. Medium Grade Land. $7,773. up 24.3% up $1,517. Low Grade Land. $5,119. up 20.2% - PowerPoint PPT Presentation
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Dr. Michael Duffy, Iowa State University Extension Economist
Iowa Land Value Survey2012
Statewide Average
$8,296up 23.7%up $1,588
High Grade Land
$10,181up 24.2%up $1,983
Medium Grade Land
$7,773up 24.3%up $1,517
Low Grade Land
$5,119up 20.2%up $862
Northwest
$11,404up 2.8%up $83
high $12,890med $11,011
low $7,162up 36.8%up $3,066
North Central
$9,560up 30.0%up $2,204
high $10,765med $8,691low $6,303
Northeast
$8,523up 29.1%up $1,921
high $10,708med $7,815low $5,288
West Central
$9,216up 24.2%up $1,797
high $11,128med $8,619low $5,877
Central
$9,365up 20.4%up $1,583
high $11,139med $8,466low $5,718
East Central
$8,420up 18.4%up $1,310
high $10,201med $8,128low $5,013
Southwest
$7,015up 18.8%up $1,110
high $8,818med $6,732low $4,484
South Central
$4,308up 26.4%up $901
high $6,437med $4,219low $2,562
Southeast
$6,172up 8.2%up $467
high $8,879med $5,685low $3,226
AVERAGE VALUESall grades 1950−2012
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, 1951−2012
-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
Inflation adj values
PERCENTAGE CHANGE adjusted for inflation
-35%
-25%
-15%
-5%
5%
15%
25%
35%
2012 AVERAGE VALUES
PERCENTAGE CHANGE
POSITIVE FACTORSaffecting land values
Commodity Pric
es (Higher)
Favorable In
terest Rates
Cash/C
redit Availa
bility
Good Farm
Economy / R
eturn
to La
nd
Safe Investm
ent / La
ck of O
thers
Land Availa
bility (L
imite
d Supply)0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
80%
63%
15% 14% 12% 10%
NEGATIVE FACTORS affecting land values
Weath
er
Politics
/ Congre
ss & A
dmin
Land to
o High (B
ubble Burst?)
Input Costs
(Higher)
Poor Yields
Stock
Mark
et / Eco
nomy/Global
0%5%
10%15%20%25%30%35%40%45%
43%
18% 18%15% 14% 13%
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
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
0%
10%
20%
30%
40%
50%
60%
70%
More Less Same
sales activity from previous yearCHANGE IN
More – 64% Less – 8%Same – 28%
More – 64%Less – 5% Same – 31%
More – 30%Less – 38%Same – 32%
More – 63%Less – 13%Same – 24%
More – 65% Less – 14%Same –21%
More – 59% Less – 12%Same – 29%
More – 51%Less – 18%Same –31%
More – 52%Less – 23%Same –25%
More – 41%Less – 11%Same – 48%
SUMMARY• Record land values continuing with new records being
recorded in different categories
• Regional differences are occurring
• Farmers are 78% of purchasers compared to just 56% in 2005
• Increased sales as people make adjustments to taxes and higher land prices
• Major uncertainties in many factors that determine land values
• Land increased 64% in past 3 years but it decreased in value the year before that
• Need to keep a realistic perspective
For more information, visit
www.extension.iastate.edu/topic/landvalue
