Iowa Appraisal reports land prices are down

   According to statewide auction results tracked by Iowa Appraisal, a real estate appraisal firm based in Des Moines, Iowa land prices are down 1.7 percent in six months based on price per CSR2 point.

   Jim Rothermich, Iowa Appraisal’s farm appraisal expert, reports market conditions have been remarkably steady over the last six months. The statewide weighted average price for tillable farmland is $175 per CSR2 point for the period January 1 through June 30, 2023, down slightly from $178 per CSR2 point on Dec. 31, 2022.

   The average price per acre for the same period decreased from $13,742 (with a weighted average CSR2 point of 77.2) to $13,385 (with a weighted average CSR2 point of 76.5).

   Year to year, June 30, 2022, to June 30, 2023, there was a 3.3 percent decrease in price per CSR2 point. The June 30, 2022, average price per CSR2 point was $181, and average price per tillable acre was $13,852 (with a weighted average CSR2 point of 76.5). Market conditions were remarkably steady.

   Reasons for stable market conditions:

   • Market adjusted to economic conditions in third quarter 2022 and stabilized.

   • Market has adjusted to historically high input prices.

   • Extreme grain market volatility – farmers have potential to have a profitable 2023.

   • Still large amounts of cash in rural areas looking to buy land.

   • Inflation has not affected land values due to farmers having liquidity.

   • Buyers have strong equity positions.

   • Eighty percent of Iowa farmland carries no debt.

   Iowa Appraisal provides agricultural and commercial real estate appraisals, appraisal reviews, market and feasibility studies, as well as research and consulting services throughout the Midwest: www.iowaappraisal.com.