dr. michael duffy, iowa state university extension economist iowa land value survey 2014

Dr. Michael Duffy, Iowa State University Extension Economist

Iowa Land Value Survey2014

$7,943

Statewide Average

down -8.9%

down -$773

High Grade Land

$9,854down -9.0%

down -$974

Medium Grade Land

$7,359down -8.5%

down -$688

Low Grade Land

$4,878down -7.9%

down -$420

Northwest

up 2.8%up $83

$9,615high 11,201$ med 8,698$ low 6,091$

down -12.3%

down -$1,345

North Central

$8,536

down -13.1%

down -$1,282

high 9,630$ med 7,874$ low 5,428$

Northeast

$8,151high 10,083$ med 7,591$ low 5,256$

down -11.0%

down -$1,010

West Central

$8,424high 10,275$ med 7,827$

low 5,173$ down -10.8%

down -$1,024

Central

$9,087high 10,780$ med 8,327$ low 5,582$

down -8.0%

down -$790

East Central

$9,008high 11,034$ med 8,388$ low 5,479$

down -3.4%

down -$319

Southwest

$6,513high 8,482$ med 6,108$ low 3,860$

down -13.5%

down -$1,018

South Central

$4,475high 6,663$ med 4,318$ low 2,808$

down -6.6%

down -$317

Southeast

$7,215high 10,150$ med 6,715$ low 3,891$

up 3.2%

up $221

AVERAGE VALUESall grades 1950−2014

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

PERCENTAGE CHANGE from previous year, 1951−2014

-35%

-25%

-15%

-5%

5%

15%

25%

35%

AVERAGE VALUESadjusted for inflation

 $0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

PERCENTAGE CHANGE adjusted for inflation

-35%

-25%

-15%

-5%

5%

15%

25%

35%

2014 AVERAGE VALUES

PERCENTAGE CHANGE

POSITIVE FACTORSaffecting land values

Interest rates Land availability Cash available Strong yields Livestock returns0%

10%

20%

30%

40%

50%

60%

70%

62%

28%

21%18% 18%

NEGATIVE FACTORS affecting land values

Low commodity prices High input prices Uncertain ag future0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

94%

20%14%

WHO PURCHASED farmland

Existing Farmers; 78%

Investors; 18%

New Farmers; 3% Others; 1%

WHO PURCHASED farmland

19891990

19911992

19931994

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

20132014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Farmers Investors New Farmers Other

SALES ACTIVITYrelative to previous year

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

20140%

10%

20%

30%

40%

50%

60%

70%

More Less Same

sales activity from previous yearCHANGE IN

More - 14%Less - 45%

Same - 41%

More - 17%Less - 47%

Same - 36%

More - 13%Less - 52%

Same - 34%

More - 7%Less - 69%

Same - 23%

More - 8%Less - 68%

Same - 24%

More - 14%Less - 62%

Same - 24%

More - 5%Less - 86%

Same - 9%

More - 8%Less - 60%

Same - 32%

More - 11%Less - 62%

Same - 27%

SUMMARY• 8.9 percent decrease largest decrease since 1986

• Land values are still 18 percent higher than in 2011

• Southeast Iowa continued to increase in value, the only area in the state to do so

• Number of sales dropped considerably

• Farm income and interest rates will be keys to watch

For more information, visit

www.card.iastate.edu