Iowa land values increased 114 percent for the year. Average value was $4,468 per acre.

Duffy, Michael

Smith, Darnell

English

Research Papers in Economics

The average value of an acre of farmland in Iowa 
reached $4,468 in 2008, continuing to increase for 
the ninth year in a row. Mike Duffy, ISU Extension 
farm economist, conducts an annual survey 
and uses the results of that survey to make an 
estimate of land values in all 99 Iowa counties. 
Duffy said the indicators toward the end of the 
year in the 2008 survey imply the upward trend 
may be slowing as the national economy battles 
recessionary pressures.
The 2008 average was an increase of $560 over 
last year, the second-highest dollar increase ever 
recorded in the 67 years that ISU has conducted 
the survey. The 2007 survey reported a $704 
increase over the previous year. The 2008 figure 
was an increase of 14 percent over 2007, compared 
with a 22 percent increase last year. Over the past 
40 years, the survey has found annual changes 
ranging from an increase in value of 31.9 percent 
in 1973 to a loss of 30.2 percent in 1985.
The survey is conducted in November each year 
and the current numbers are based on estimated 
values as of Nov. 1, 2008, compared to one year 
earlier. There have been considerable changes in 
the situation in Iowa over the past few months. 
Monthly average corn and soybean prices in 
Iowa had been rising continually until July of 
2008. Corn averaged $5.41 per bushel in July 
and current prices are below $3.00. Soybeans 
averaged $13.10 in July and the current prices are 
below $8.00 per bushel. This change in revenue 
has been accompanied by substantial increases 
in the costs of production, especially for fertilizers 
and seed.         
Lower grain prices toward the end of 2008  
and the higher costs of production meant lower 
net revenue per acre, which is an indicator that 
2008 
IOWA LAND VALUE SURVEY
FM 1825   Revised   December 2008       Table 1. Recent changes in Iowa farmland values.
  Value  Dollar  Percentage
Year  per acre   change   change
1971  430  11  2.6
1972  482  52  12.0
1973  635  154  31.9
1974  834  199  31.3
1975  1,095  261  31.3
1976  1,368  273  24.9
1977  1,450  82  6.0
1978  1,646  196  13.5
1979  1,958  312  19.0
1980  2,066  108  5.5
1981  2,147  82  3.9
1982  1,801  –346  –16.1
1983  1,691  –110  – 6.1
1984  1,357  –334  –19.8
1985  948  –409  –30.2
1986  787  –161  –17.0
1987  875  88  11.2
1988  1,054  179  20.4
1989  1,139  85  8.1
1990  1,214  75  6.6
1991  1,219  5  .4
1992  1,249  30  2.5
1993  1,275  26  2.1
1994  1,356  81  6.4
1995  1,455  99  7.3
1996  1,682  227  15.6
1997  1,837  155  9.2
1998  1,801  –36  –1.9
1999  1,781  –20  –1.1
2000  1,857  76  4.3 
2001  1,926  69  3.7 
2002  2,083  157  8.2 
2003  2,275  192  9.2 
2004  2,629  354  15.1  
2005  2,914  285  10.8 
2006  3,204  290  10.0 
2007  3,908  704  22.0 
2008  4,468  560  14.3 
Figure 1. Average value per acre of Iowa farmland.
land values will be moderating. Other surveys 
conducted earlier in the year indicated higher 
increases, including a 17.6 percent increase for two 
six-month periods ending in September, reported 
by the Realtors Land Institute, and a 17 percent 
increase for the year ending in October, reported 
by the Seventh District Federal Reserve Board.
Land values have almost doubled since 2003, 
going from $2,275 to $4,468 in just five years. 
In 2008, three counties averaged more than 
$6,000 per acre.  This is the first time any county 
has averaged over that amount.  Similarly, 2008 
marked the first time that no county has averaged 
below $2,000 per acre. 
There also were some notable changes in other 
categories from the 2007 survey. East Central Iowa 
reported a significant decrease in the amount 
of sales activity. Almost half, 44 percent, of the 
respondents from the East Central crop reporting 
district reported less sales relative to the same 
time period from a year ago. Duffy said this is 
a reflection of the flooding and other hardships 
suffered in this area over the past year. South 
Central Iowa also reported a significant decline in 
sales, with 43 percent reporting less sales,  
perhaps reflecting the relatively soft demand for 
recreational land.                  Continued on back page 
   1900 1920 1940 1960 1980 2000
$4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
43 255 6988 261
787
(1986)
2147
(1981)
1857
(2000)
4468
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Figure 2. County estimates of average dollar value per acre for Iowa farmland based on U.S. Census 
of Agriculture estimates and the Nov. 1, 2008, Iowa Land Value Survey conducted by ISU Extension.
The top figure is the estimated Nov. 1, 2008, value; the bottom figure is the estimated Nov. 1, 2007, value.
Figure 3. Estimates of average dollar value per acre as of November 1, 2008, 
by Iowa Crop Reporting District. First line: high-, medium-, and low-grade farmland values. 
Second line: district average. Third line: average percentage change since November 1, 2007.Table 2. Average value per acre of Iowa farmland listed by crop reporting districts and grades of land.
    State      North       West              East                South  
Year  Average      Northwest    Central      Northeast  Central  Central  Central   Southwest         Central   Southeast
All Grades
  1981  2147  2562  2721  2227  2056  2538  2530  1586  1184  1790
1986  787  937  912  786  768  930  1000  607  403  705
1987  875  1084  1055  835  871  1044  1053  676  421  782
2000  1857  2198  2169  1868  1924  2195  2190  1412  992  1655
2002  2083  2434  2367  2149  2101  2392  2547  1632  1211  1808
2003  2275  2683  2514  2347  2329  2652  2715  1774  1354  1979
2004  2629  3118  2913  2665  2728  3101  3054  2088  1547  2286
2005  2914  3393  3222  2963  3048  3415  3396  2350  1793  2483
2006  3204  3783  3478  3187  3410  3716  3725  2580  1927  2849 
2007  3908  4699  4356  4055  4033  4529  4272  3209  2325  3463 
2008  4468  5395  4950  4590  4823  5280  4743  3626  2573  3913
High Grade
1981  2759  3035  3209  2885  2576  3061  3293  2050  1880  2726
1986  1048  1131  1094  1048  1000  1154  1343  832  682  1120
1987  1150  1306  1260  1102  1125  1288  1399  912  688  1229
2000  2324  2547  2462  2329  2375  2660  2743  1825  1509  2353
2002  2576  2776  2676  2625  2583  2848  3105  2117  1931  2539
2003  2790  3040  2817  2857  2820  3121  3263  2285  2121  2783
2004  3193  3537  3265  3189  3264  3621  3659  2657  2358  3174
2005  3511  3813  3588  3522  3691  3935  4069  2925  2659  3385
2006  3835  4261  3834  3816  4072  4263  4443  3209  2663  3793 
2007  4686  5313  4807  4859  4804  5261  5073  3989  3231  4625 
2008  5381  6150  5514  5415  5752  6076  5674  4642  3586  5346
Medium Grade
1981  1931  2252  2334  2052  1866  2279  2258  1472  1149  1604
1986  699  830  777  709  684  813  866  561  396  622
1987  780  957  903  754  776  928  925  630  413  696
2000  1701  2001  1972  1728  1772  1956  1996  1320  955  1511
2002  1924  2278  2142  2010  1930  2175  2358  1522  1152  1659
2003  2123  2507  2309  2221  2167  2438  2543  1659  1307  1834
2004  2457  2930  2669  2515  2564  2858  2863  1956  1492  2118
2005  2736  3199  2982  2834  2833  3165  3172  2217  1725  2347
2006  3011  3561  3223  2987  3213  3458  3501  2442  1866  2679 
2007  3667  4385  4026  3777  3796  4194  4005  3047  2296  3270 
2008  4195  5023  4568  4339  4537  4919  4405  3425  2527  3721
Low Grade
1981  1157  1460  1517  1220  1125  1336  1366  959  624  752
1986  377  488  468  405  350  475  460  290  176  257
1987  432  571  553  444  419  535  495  341  207  289
2000  1117  1370  1387  1167  1126  1299  1288  862  597  875
2002  1322  1571  1568  1448  1332  1516  1628  996  760  997
2003  1463  1808  1682  1512  1500  1707  1811  1130  858  1063
2004  1713  2087  1976  1816  1746  2028  1998  1354  1029  1272
2005  1961  2382  2252  2032  1970  2353  2237  1614  1252  1438
2006  2195  2566  2500  2248  2293  2615  2505  1729  1373  1786 
2007  2656  3210  3125  2853  2738  3004  2928  2175  1583  2131 
2008  2967  3580  3408  3296  3187  3469  3214  2298  1757  2271Of the nine crop reporting districts in the state, 
Northwest Iowa reported the highest average 
value at $5,395 per acre. The lowest average in  
the state was in South Central Iowa at $2,573 
per acre. West Central Iowa was the leader in 
percentage increase at 19.6 percent, while South 
Central Iowa had the lowest percentage increase 
at 10.7 percent.
The highest county average in the state was Scott 
County at $6,310 per acre, while Decatur County 
was lowest at $2,002 per acre. Sioux County led 
the state with the largest dollar increase at $891 
per acre, while Monona County had the largest 
percentage increase at 19.9 percent.
Low grade land in the state averaged $2,967 per 
acre, an increase of $311 or 11.7 percent over the 
2007 survey. Medium grade land averaged $4,195 
per acre, a $528 increase or 14.4 percent.  High 
grade land averaged $5,381 per acre, an increase 
of $695 or 14.8 percent.
Data on farmland sales have been collected 
by Iowa State University annually since 1941. 
About 1,100 copies of the survey are mailed 
each year to licensed real estate brokers, ag 
lenders, and others knowledgeable of Iowa land 
values. Respondents are asked to report values 
as of November 1. This year, 479 usable surveys 
were returned, providing 625 individual county 
estimates, including land values in nearby 
counties if they had knowledge of values in those 
counties.
Prepared by Michael D. Duffy, extension economist, and 
Darnell Smith, research associate, Department of Economics, 
Iowa State University.
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Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call 
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Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 
30, 1914, in cooperation with the U.S. Department of Agriculture. Jack M. Payne, 
director, Cooperative Extension Service, Iowa State University of Science and 
Technology, Ames, Iowa. 
Economics 1-3Iowa State University does not discriminate on the basis of race, color, age, 
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Iowa Land Value Survey, 2008

http://www.econ.iastate.edu/sites/default/files/publications/papers/paper_12918.pdf

Iowa Land Value Survey, 2008

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