FNC News

Historically, farmland values have shown to be a strong and stable investment, with steady long-term appreciation potential. However, there have been notable exceptions. In the 1980s, land values saw a significant dip due to higher interest rates and collapsing crop prices during the farm crisis. Similarly, during the Great Depression in the 1930s, U.S. farmland values dropped by over 67%.

Most recently, despite some strong sales locally, we have seen overall land values continue to erode since late 2023, again due to higher interest rates and depressed commodity prices. However, just in the last quarter, the downward trajectory has slowed, which may point to a stabilization in decline.

The Iowa Chapter REALTORS® Land Institute released the Spring survey results showing a, “1.0% decrease on a statewide average for the September 2024 to March 2025 time period. This is following the March 2024 to September 2024 time period that showed a 5.0% decrease, giving us a 12-month decrease of 6.0% for the State of Iowa on tillable acres.” 

After a period of rapidly increasing values in 2021 and 2022 we saw a softening effect beginning to take shape in 2023 with 5-10% decrease in 2024.  Now, as we finished out the 2024 season, we saw an increase in demand for land mostly driven by above average yields over most of the state.  As we approach the planting season in 2025, we’ve again seen the volume of land for sale slightly decrease, which helps to maintain values as we move into spring.

It’s important to note that over the long term, land values tend to rise due to increased demand for food, population growth, and a finite land supply. Looking ahead to the spring planting season, the strength of Iowa’s farmland market in 2025 will largely depend on the upcoming growing season, crop yields, commodity prices, and broader economic conditions.

If you or someone you know is looking to gain a deeper understanding of Iowa farmland values, we invite you to get in touch with one of our experienced local agents. They can provide valuable insights tailored to your specific farm, whether you’re considering buying, selling, or simply want to stay informed about current market trends. Our agents have extensive knowledge of the local area and can help you navigate the complexities of the farmland market, ensuring you have the information needed to make the best decisions for your property and investment.