Iowa State Land Values Survey Shows Stability in Farmland Values

If you’ve been waiting for a big drop or even an increase in Iowa farmland values this year, you won’t find it in the newest Iowa State University Land Value Survey. The survey offers a simple answer: not much changed, at least according to the overall numbers. 

The 2025 report shows that the average value of Iowa farmland inched up just 0.7%, or $83 per acre, bringing the statewide average to $11,549 per acre. That’s still $286 below the 2023 peak, when values reached a record $11,835.

But the Statewide Number is Nuanced

Dr. Rabail Chandio -- the Iowa State University Assistant Professor and Extension Economist in the Department of Economics who leads the annual survey -- spoke to American Farmland Owner about the highly anticipated results.

She said earlier in the year she was expecting the data by now to show a minor decline. So, while this modest increase instead was a bit surprising, it shows the market stabilizing. That stability is something she expected to eventually take place after years of recent big gains. 

“It wasn’t a boom or a bust,” said Dr. Chandio, “Changes of less than five percent—up or down—are more of an adjustment than a true statewide trend. This year was a very uneven adjustment, with the story changing as you move across the state.”

Depending on where you farm, 2025 may have looked pretty good, or noticeably softer.

A Divided Market

While 60 of Iowa’s 99 counties saw nominal increases in land values, 78 counties saw declines once inflation was factored in. Three crop-reporting districts posted nominal drops. Meanwhile, parts of northeast Iowa were up strongly—3–4% in some counties—while portions of central Iowa slid 2–3%.

County-level highlights show how scattered the results were:

• Highest value: O’Brien County at $16,269/acre (+2.2%)

• Lowest value: Appanoose County at $6,679/acre (–2.3%)

• Largest dollar increase: Dubuque County (+$553)

• Largest percentage increase: Clayton & Allamakee (+4.4%)

• Largest percentage and dollar decrease: Kossuth County (–4.3%, –$552)

  
  

District-level results tell the same mixed story. Six of nine districts increased, with the Northwest district again leading at $14,522 per acre. The South-Central district remained the lowest at $7,623. The Northeast district saw the biggest gains (+4.1%), while North Central took the biggest hit (–2.6%).

RELATED: Here is a look at another land values report for key Midwestern states by the Federal Reserve Bank. 

What’s Behind the Numbers in Iowa?

Dr. Chandio said the forces shaping the market this year were pushing in opposite directions, leaving farmland values stuck in a sort of economic tug-of-war.

“Land gets its value from income-generating potential,” she noted.

Areas of the state with land that supports cattle farming are seeing value gains. On the flip side, areas of the state with mostly corn and bean farms are seeing value declines.

On the negative side:

• Soft commodity prices, cited by 32% of survey respondents, were the most common drag.

• Long-term interest rates (22%) continued to weigh heavily.

• Tariffs and trade uncertainty (13%) lingered in the background.

  
  

“Interest-rate effects take years—up to a decade—to fully show up in land values,” Chandio said. “Those post-COVID rate hikes from 2022 and 2023 are still working their way through the system.”

On the positive side:

• Limited land supply—the top positive factor at 21%—continues to prevent sharper declines.

• Strong yields (13%) and cash/credit availability (10%) helped keep many counties afloat.

  
  

“For some areas, strong yields and steady livestock income were enough to offset the pressure from commodity prices,” Chandio said. “For others, they weren’t.

Nominal Up, Real Down: What It Means

One of the more interesting quirks in this year’s report is that nominal land values rose, but inflation-adjusted values fell. Chandio said this matters for landowners making decisions.

“A farmer selling land today will get more dollars than last year, and that can help pay down debt, transition into retirement, or reinvest elsewhere,” she explained. “But the real economic gain is smaller, because those dollars don’t go as far as they did a few years ago.”

In other words, sellers may feel “richer” on paper—but not always in purchasing power.

Looking Ahead

Chandio said the survey results reflect an environment where people are perhaps less likely to spend big money on farmland. “This doesn’t give a lot of confidence. So, unless you really want the land and it’s a once in a lifetime opportunity, people may be thinking it’s not the time to spend millions of dollars,” she explained. 

The 2025 survey—based on 463 responses from 316 agricultural professionals—aligns with other land-value monitors, including the Federal Reserve Bank of Chicago and the REALTORS® Land Institute: stable to slightly softer conditions, with no dramatic swings.

Iowa State Land Value Survey started in 1941 and has provided a long-term window into how land markets change, how they cycle, and how they respond to economic pressures. 

RELATED: This federal legislation aims to eventually find ways to lower the cost of fertilizer.