The Iowa Chapter of the REALTORS® Land Institute reports in their March 2021 Land Trends and Values Survey, a 7.8% increase in farmland values on a statewide average, for the September 2020 to March 2021 time period. This is following a period of 12 months that featured farmland values that were virtually unchanged across the state. Participants in the survey are specialists in farmland and are asked for their opinions about the current status of the Iowa farmland market.

They were asked to estimate the average value of farmland as of March 1, 2021. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information. The RLI says “These results will come as no surprise to many, as Net Farm Incomes have surged in recent months. Government support payments in 2020 coupled with a rally in commodity prices to five-year highs have brought new optimism to the land market. Other major factors driving these increases are low interest rates and a very low supply of quality farms being offered to the market.”

The Northern Tier of Crop Reporting Districts showed the greatest strength, ranging from an 8.3% to 9.6% increase in cropland values. The Southern Tier showed the most modest gains ranging from 6.2% to 6.6% from September 2020 to March 2021. Timber and Pasture acres showed similar strength, boasting a 7.9% increase to Timberland values and a 6.5% to Pastureland values.

REALTORS® Land Institutes – Iowa Chapter farmland value survey has been conducted in March and September since 1978. This survey plus the RLI Farm and Ranch Multiple Listing Service are activities of REALTORS® specializing in agricultural land brokerage daily.