Agricultural land values in Greene County decreased more than the state average, but the value is still higher than the average value across the state.
Results of Iowa State University’s 2018 Land Value Survey were released Dec. 12. The annual survey was conducted by the Center for Agricultural and Rural Development (CARD) at ISU and ISU Extension and Outreach.
The new survey estimates the average statewide value of an acre of farmland to be $7,264. That’s a decrease of 0.8 percent from the 2017 average value, from $7,326 in ’17 to $7,264 this year.
Greene County ag land values fell 2.2 percent, from $7,878 to $7,696.
According to the Land Value Survey, 70 counties saw a decrease in land value. All counties contiguous to Greene saw a decrease. Land values decreased only 0.3 percent in Carroll County. Other decreases were Guthrie, 1.7 percent; Calhoun, 2.4 percent; Dallas, 2.5 percent; and Webster and Boone, both 3.2 percent.
The ISU Land Value Survey is based on information from agricultural professional knowledgeable about land market conditions such as appraisers, farm managers, ag lenders, and actual land sales. The 2018 survey is based on 793 useable responses from 624 professionals.
Dr Wendong Zhang, assistant professor of economics at ISU, led the survey and did the briefing on the results last week.
According to Zhang, lower commodity prices, due in part to recent “trade disruptions”, was the most significant factor in the decline in land value.
Zhang reassured farmers that the ag sector is not headed toward a collapse like the 1980s farm crisis. “Limited land supply and strong demand by farmers still seems to hold up the land market,” he stated in a prepared press release. “For five consecutive years, survey respondents have reported fewer sales than the year before, and the ag economy is still robust with 82 percent of the land in Iowa fully paid for.”
Land values have decreased four of the last five years, with 2017 being the odd year. Ag land values increased 2 percent in ’17. A historic high average value was met in 2013 at $8,716. Values fell 8.9 percent in 2014, 3.9 percent in 2015, and 5.9 percent in 2016.
Since 2013, the statewide average value of an acre of farmland has decreased 17 percent.
