After a period of modest gains and losses in Iowa farmland value, 2021 saw the biggest increase in value since 2011.

According to surveys conducted by Iowa State University and Iowa State University Extension and Outreach, the average value of an acre of Iowa farmland skyrocketed by 29 percent in the past year. The nominal value of an acre of farmland is now higher than at any point since ISU began surveying values in 1941 and is slightly lower than the previous peak in 2013 when adjusted for inflation. ISU Farm Management Specialist for Washington County Ryan Drollete shares some of the positive factors influencing land value, “Individuals that took the survey said that commodity prices being higher is favorable to keep land values high. We’ve got favorable interest rates. We’ve got low interest rates at the moment. We’ve had some historically strong yields across the state. We’ve had some really good government payments from the federal government to help subsidize our farm economy. And then the availability of land. So the availability of land, the number of individuals wanting to sell their land, has been kind of lower over the past few years.”

Drollete added that some of the negative factors included concerns about the sustainability of high land prices, possible changes in interest rates, higher input costs and uncertainty related to political policies and COVID-19. Keokuk County and the southeast Iowa district both saw the smallest percentage increase in value. Land value in Washington County increased from $8,386 per acre in 2020 to  $10,332 in 2021, nearly $600 above the state average.