How Much Is an Acre of Land Worth in Iowa?
Explore Iowa's diverse land market. Understand the key influences on per-acre values and how to find reliable, up-to-date pricing data.
Iowa’s fertile soils are a foundational asset for its agricultural sector. Land value in the state is of continuous interest, reflecting its connection to farming, economic vitality, and the real estate market. Understanding land valuation, price influences, and data sources is essential for investment or sale.
Understanding Current Land Values
The average value of an acre of land in Iowa declined in 2024, ending a five-year period of consistent increases. As of November 2024, the average value for all qualities of land was estimated at $11,467 per acre, according to the 2024 Iowa State University Land Value Survey. This represents a 3.1% decrease ($369 per acre) from November 2023 record highs. Despite this recent adjustment, the nominal land value remains significantly higher than values seen between 2020 and 2022, and it stands 31.6% above the previous peak in 2013.
This shift indicates a market correction following substantial gains (29% in 2021 and 17% in 2022). When adjusted for inflation, the 2024 average value is $8,627 per acre in 2015 dollars, marking a 5.5% decrease from the previous year. This inflation-adjusted value still surpasses that of 2021. Land values are not uniform across the state, with variations observed in different regions and among different land qualities.
Key Factors Affecting Land Price
Several interconnected factors influence the per-acre price of land, creating significant variations across different parcels and regions. Soil productivity and quality are fundamental determinants, particularly for agricultural land. Land with higher fertility, better drainage characteristics, and optimal soil composition commands a higher price due to its superior agricultural output potential. The presence of improvements such as drain tile systems or irrigation infrastructure further increases land value.
Location plays a substantial role, as proximity to urban centers, major transportation routes, grain elevators, or processing facilities can significantly impact a property’s appeal and accessibility. Land situated near recreational amenities or with unique natural features also tends to have a higher value. The intended land use potential is another factor; land primarily suited for agricultural production may be valued differently than land with potential for residential, commercial, or recreational development. For instance, land zoned for commercial use near a highway interchange will likely be valued differently than a similar-sized agricultural parcel.
Broader market conditions also exert considerable influence on land prices. General economic trends, prevailing interest rates, and commodity prices for agricultural products directly affect profitability and the perceived value of agricultural land. When commodity prices are low and interest rates are high, it can tighten profit margins for farmers, placing downward pressure on land values. Conversely, a limited supply of available land for sale, coupled with strong demand from expanding farm operations or investors, can help support prices during periods of market adjustment.
Locating Up-to-Date Information
For current and specific land value information, several reliable sources provide detailed data and analysis. The Iowa State University Extension and Outreach conducts an annual Land Value Survey, offering state, district, and county-level estimates. This survey, based on insights from agricultural professionals, is a comprehensive tool for understanding general trends and geographical price relationships. The survey data also provides estimates for high, medium, and low-quality land, offering a nuanced perspective on values.
Another source is the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS), which publishes land value reports for broader context. While the ISU survey is detailed for the state, the USDA provides national and regional overviews. For localized and specific assessments, engaging with licensed land appraisers is an approach. These professionals conduct property analyses, considering unique characteristics and recent comparable sales to provide valuations.
Local real estate associations specializing in land sales offer insights into market activity and trends within specific areas. Online real estate platforms focusing on land sales provide an overview of listings and recent transactions, though they may not always offer the in-depth analysis of professional surveys or appraisals. Utilizing these diverse resources allows for a comprehensive understanding of land values for individual needs.