The Iowa Chapter of REALTORS® Land Institute announced the results of its September 2015 Land Trends and Values Survey today, showing a statewide average decrease of cropland values of 3.7 percent from March 2015 to September 2015. This, combined with the 7.6 percent decrease reported in March 2015, indicates a statewide average decrease of 11.3 percent from September 1, 2014 to September 1, 2015. All nine Iowa crop reporting districts showed a decrease in the average farmland value. The districts varied from a 1.9 percent decrease in the west central district to a 5.4 percent decrease in the south central district since March 2015. These estimates are for bare, unimproved land with a sale price on a cash basis.
Factors contributing to current farmland values include: lower commodity prices, increasing interest rates, lack of stable alternative investments, cash on hand, and a limited amount of land on the market.