How Much Is an Acre of Land in Iowa?

Land valuation in Iowa is a nuanced subject, reflecting the state’s deep connection to agriculture and its broader economic landscape. The value of an acre of land is not uniform; instead, it is influenced by a diverse set of characteristics and external market forces. Understanding these elements provides a clearer picture of land’s worth, which is crucial for potential buyers, sellers, and those interested in property investment. This exploration aims to demystify the factors that determine land prices across Iowa’s varied terrain.

Current Average Land Values in Iowa

Iowa’s land market experienced a slight adjustment after several years of substantial growth. As of November 2024, the average value of farmland across Iowa was estimated at $11,467 per acre, according to the Iowa State University (ISU) Land Value Survey. This figure represents a 3.1% decrease, or $369 per acre, from the previous year’s average of $11,835 per acre in November 2023. The decline marks a shift after three consecutive years of increases, which saw values surge by 29% in 2021 and 17% in 2022, followed by a more modest 3.7% rise in 2023.

Despite this recent downturn, the nominal land value in 2024 remains significantly higher than the peak reached in 2013, indicating a long-term appreciation trend. The survey provides a comprehensive overview of statewide averages and regional variations. While these numbers offer a general benchmark, actual per-acre values can differ considerably based on localized conditions and specific property attributes.

Key Factors Influencing Land Value

Several interconnected factors contribute to the varied pricing of land across Iowa. Soil quality and its inherent productivity are important, especially for agricultural land, with higher Corn Suitability Rating (CSR2) scores correlating with greater value. The topography and drainage of a parcel also play a significant role, as well-drained, level land is more suitable for cultivation and commands a higher price.

Location is another determinant, with land situated near urban centers, major transportation routes, or agricultural infrastructure often fetching premium prices. Access to reliable water sources and water rights can further enhance a property’s appeal. The physical characteristics of the parcel, including its size and shape, affect usability and marketability.

Existing improvements on the land, such as tiling, add to its overall value. Zoning regulations dictate potential land uses, influencing development potential. Broader market dynamics, including supply and demand, interest rates, and agricultural commodity prices, influence land values.

Value by Land Type

Land values in Iowa diverge widely depending on the primary use and characteristics of the property. Tillable cropland, especially high-quality parcels, represents the highest value category. While the statewide average for all land qualities was $11,467 per acre in 2024, low-quality tillable land averaged $7,450 per acre. Conversely, some top-tier tillable acres can sell for substantially more, with auction results showing prices exceeding $21,000 per acre for parcels with high CSR2 ratings.

Pasture and hayland, while agriculturally productive, command lower per-acre prices than prime tillable ground due to their limitations for row cropping. Recreational land has seen increasing interest, particularly in areas with natural features. These properties can represent a significant investment, with average listing prices ranging from hundreds of thousands to over $1 million, depending on size and amenities.

Land designated for residential development, often near urban or suburban areas, can be valued based on its potential for housing projects rather than agricultural output. Commercial and industrial land, situated in or near population centers with infrastructure access, varies widely in price. While average commercial land for sale in Iowa is listed around $81,430 per acre, specific parcels in prime locations demand much higher prices due to their development potential and strategic access.

Accessing Localized Land Data

For those seeking precise land valuation data beyond statewide averages, several resources are available. County assessor websites often provide public access to property records, including recent sales data and assessed values, which offer insights into local market trends. Engaging with real estate professionals specializing in land sales can provide market knowledge and access to proprietary sales databases.

Professional land appraisal services offer accurate valuations for specific properties, considering unique attributes and market conditions. Appraisers use various methodologies to determine a property’s fair market value. Monitoring public auction results for land sales also provide real-time indicators of market demand and pricing for comparable properties locally. The Iowa State University Extension and Outreach is a resource, publishing annual land value surveys that include county-level data and analyses of market drivers.