Historic jumps in Iowa farmland values, cash rents: USDA surveys

Farmland values and cash rents are up considerably, according to the U.S. Department of Agriculture’s annual National Agricultural Statistics Service surveys.

Iowa cropland values rose 19.7 percent on average over the past year — from $7,810 per acre to $9,350 per acre, according to the September edition of the “Ag Decision Maker” newsletter, a publication of Iowa State University Extension and Outreach.

In addition, pastureland rose to 9.3 percent, now averaging $3,300 per acre, it said.

For cash rents, the surveys showed an increase of 9.9 percent for non-irrigated cropland, for an average of $256 per acre in 2022, ISU said in a news release.

“Cash rent for an acre of Iowa pastureland is up to $59.50 per acre on average, an increase of 2.6 percent and a record high level,” the release stated, quoting the article.

Lee Schulz, ISU associate professor in economics and livestock economist and the newsletter article’s author, said it’s necessary to remember that these figures are USDA statewide averages and that county and individual parcel results could be higher or lower, depending on several factors.

Schulz added there could be further increases to pastureland values because pasture values historically tend to follow cattle and corn prices.

As a state average, the release said, cropland values are the highest ever, and cash rents are second only to 2014, when they reached $260 per acre.

“The 2022 general economy is more anemic,” Schulz said in the release. “Inflation is around 8.5 percent, which could buoy land values.

“Potential for a steeper economic slowdown could dampen interest in buying land, and rising interest rates and any slippage in net farm income could erode farmers’ ability to service land debt.”