Iowa farm land value slips again, 3.7 percent
(RLI) – Iowa farm land as slipped another 3.7 percent, according to the Iowa Chapter of REALTORS Land Institute which released on Thursday its September 2016 Land Trends and Values Survey.
The survey showed a statewide average decrease of cropland values since March.
Combining this decrease with the 5 percent decrease reported in March 2016 from the previous September, indicates a statewide average decrease of 8.7 percent from Sept. 1, 2015 to present.
Since Iowa’s farm land hit highs in 2013, the state has seen a decrease in land values roughly 25 to 30 percent, the survey said.
All nine Iowa crop reporting districts showed a decrease in the average farmland value.
The districts varied from a 2.4 percent decrease in south central Iowa to a 5.8 percent decrease in southwest Iowa since March.
Factors contributing to current farmland values include lower commodity prices and limited amount of land on the market.
Other factors include lack of stable alternative investments, cash on hand and increasing interest rates.
Participants were asked to estimate the average value of farmland as of Sept. 1. 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 Iowa Chapter of REALTORS Land Institutes farmland value survey has been conducted in March and September since 1978.
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