By Andi Anderson
The 2025 Iowa State University Land Value Survey shows that average farmland values in Iowa increased slightly during the past year. According to the survey, the average value rose 0.7 percent, or $83, bringing the statewide average to $11,549 per acre. While this represents a nominal increase from last year, farmland values remain about $286 per acre below the 2023 peak.
"Changes of that size often reflect variation across counties and crop reporting districts rather than a consistent statewide trend," said Dr. Rabail Chandio, who oversees the annual survey. "It wasn't a boom or a bust, just a very uneven adjustment, with the story changing as you move across the state. Strong yields, limited land supply, and solid livestock income helped prop up values in some areas, but lower commodity prices, high interest rates, and rising costs pulled them down in others."
"Because we haven't seen any major reductions, the market is still feeling the weight of the rate hikes from 2022 and 2023. And since interest-rate effects take years, up to a decade, to be fully capitalized in land values, those post-COVID increases are still working their way through the system," said Chandio. Sellers may receive more dollars than last year, which can help pay down debt, support retirement plans, or allow reinvestment. However, inflation reduces purchasing power, meaning land sale proceeds may not stretch as far when buying equipment, land, or inputs.
Interest rates remained a key factor affecting the market. Federal interest rates saw only modest cuts in 2025, and the effects of rate increases from 2022 and 2023 are still influencing land values. Commodity markets also played a role, with soft prices creating tight margins for farmers. Tariffs and trade uncertainty were noted as a smaller and indirect influence.
County level data showed wide variation. Sixty counties reported nominal increases, but most counties experienced declines after adjusting for inflation. O’Brien County recorded the highest land values, while Appanoose County reported the lowest. Some counties saw notable gains, while others experienced significant declines.
By district, land values increased in six of Iowa’s nine crop reporting districts. The Northwest district reported the highest average values, while the South Central district reported the lowest. Differences were also seen by land quality, with low, medium, and high quality land all showing modest increases statewide.
The survey results align with other land market reports showing limited overall movement. Conducted by Iowa State University and Extension, the survey continues a long tradition of tracking farmland trends and providing valuable insight into the state’s agricultural economy.
Photo Credit: gettyimage-jamesbrey
Categories: Iowa, Business