By Eric Schlutz and Dennis L. Stolk–Ruhl & Ruhl Realtors
MUSCATINE, Iowa–The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 Realtors Land Institute, reported no increase or decrease in cropland values on a statewide average for the March to September period. Combining this stable period with the 0.1% increase reported in March indicates a statewide average increase of 0.1% from Sept.1, 2019 to Sept. 1, 2020.
In our East Central district, high quality cropland is selling at $10,355 per acre, or at the second highest rate in the state. This is up slightly from the value reported in March. Timber is selling at an average of $2,627 per acre.
“Low interest rates and the resurgence of investor buyers have helped maintain land values. A good harvest and some strength in the commodity prices would only help to further strengthen the land market,” said Eric Schlutz, ALC, Realtor, and manager of the Ruhl & Ruhl Realtors Muscatine Office.
“Our land markets continue to show resilience and stability in values during a time of generally low commodity prices. Historically low interest rates, good buying demand by both farmers and investors, as well as a lack of inventory of available land for sale have all contributed to this stability,” 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 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.
|% Change in|