The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a -0.2% decrease in cropland values on a statewide average for the March 2023 to September 2023 time period. This is following the September 2022 to March 2023 time period that showed a 0.8% increase, giving us a year-over-year increase of 0.6% for the state of Iowa. After double digit increases through much of 2021 and 2022, the 2023 land market has confirmed its move toward leveling off. We continue to see a struggle between rising interest rates trying to pull the market lower while positive net farm incomes allow the market to remain supported at today’s values.
In our East Central district of Iowa, high quality cropland is selling at $16,049 per acre, or at the second highest rate in the state. This is up slightly from the value reported in March, 2023.Timber is selling at an average of $4,221 per acre.
“As expected, the survey results reflect the leveling of the land market that we have seen the last twelve months. With the current interest rate environment, we can expect more volatility in general but I still expect to see strong demand for high quality farms.“ said Eric Schlutz, ALC, Realtor, and Manager of the Ruhl&Ruhl Realtors Muscatine Office.
"The results from this recent survey confirms generally what we have been seeing in the farmland market. Basically a leveling off across the market with high quality land still in strong demand with slightly increased prices and lower quality land decreasing slightly in pricing. Rising interest rates, variable crop yields and generally lower commodity prices have impacted the market and we expect to see this continue into the next year" said Dennis Stolk, ALC, Farm and Land Specialist with Ruhl Farm & Land.
For the survey, participants are asked to estimate the average value of farmland as of September 1, 2023. 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. Ruhl Farm & Land, a division of Ruhl&Ruhl Realtors, is focused on the sale, purchase and marketing of land, farms and acreages.
About Ruhl&Ruhl Realtors
A family-owned company since 1862, Ruhl&Ruhl Realtors has grown to 320 sales associates, 61 employees and ten offices, selling more than 5,200 homes in eastern Iowa, northwest Illinois and southwest Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm and land sales, senior services, home vendor services, insurance services and mortgage services. For more information on Ruhl&Ruhl Realtors, visit their website www.RuhlHomes.com