Land Law UpdateREALTORS® Land Institute – Iowa Chapter

Land Trends & Values Press Release

Matt Vegter

Elliott Siefert

Hertz Real Estate Services, Nevada, IA

Land Trends and Values Committee Co-Chairs

September 29, 2021

REALTORS® Land Institute –

Iowa Chapter

September 2021 Land Value Survey

Press Release

REALTORS® Land Institute is an affiliate of the National Association

of REALTORS®

Organized for REALTORS® who specialize in farm and land sales,

management, development and appraisal

REALTORS® Land Institute –

Iowa Chapter

September 2021 Land Value Survey

Press Release

Participants in the Survey

Asked for their opinions about the current status of Iowa’s farmland market.

Asked to estimate the average value of farmland as of September 1, 2021.

Estimates are for bare, unimproved land with a sale price on a cash basis.

REALTORS® Land Institute- Iowa Chapter

September 1, 2021

18.8%

March 2021 – September 2021

Nine Crop Reporting Districts

REALTORS® Land Institute- Iowa Chapter

September 1, 2021

14.2%

16.6%

20.7%

18.4%

22.5%

21.9%

19.7% 17.1% 18.2%

March 2021 – September 2021

Nine Crop Reporting Districts

REALTORS® Land Institute- Iowa Chapter

September 1, 2021

September 2020– September 2021

8.3%

14.2%

22.5%

8.2%

16.6%

24.8%

6.6%

19.7%

26.3%

9.6%

20.7%

30.3%

7.8%

18.4%

26.2%

6.2%

17.1%

23.3%

8.6%

22.5%

31.1%

7.3%

21.9%

29.2%

6.5%

18.2%

24.7%

Top – March 2021

Bottom – September 2021

REALTORS® Land Institute- Iowa Chapter

September 1, 2021

September 2020 – March 2021 7.8%

March 2021 – September 2021 18.8%

26.6%

September 2020– September 2021

Nine Crop Reporting Districts

REALTORS® Land Institute- Iowa Chapter

Pasture Acres

September 1, 2021

14.5%

$4,215

11.8%

$3,994

15.2%

$3,407

12.7%

$3,422

15.4%

$4,059

19.8%

$3,758

12.9%

$3,875

13.7%

$3,367

11.0%

$3,411

March 2021– September 2021

Top – Percent change

Bottom – Price per Ac

Nine Crop Reporting Districts

REALTORS® Land Institute- Iowa Chapter

Non-Tillable / Timber Acres

September 1, 2021

12.3%

$3,767

12.6%

$3,456

18.8%

$2,890

11.8%

$3,119

17.7%

$4,200

19.9%

$3,387

19.2%

$3,106

15.2%

$3,378

16.8%

$3,105

March 2021 – September 2021

Top – Percent change

Bottom – Price per Ac

Chicago Federal Reserve Study

Percent Change in Dollar Value of “Good” Farmland

April 1, 2021 July 1, 2020to to

July 1, 2021 July 1, 2021

Illinois +3 +12

Indiana +2 +12

Iowa +6 +18

Michigan * *

Wisconsin 0 +13

Seventh District +3 +14 Top: April 1, 2021 to July 1, 2021Bottom: July 1, 2020 to July 1, 2021

Source: Federal Reserve Bank of Chicago, AgLetter, No. 1993, August 2021

Conclusion

Land values are up considerably in all categories

Positive drivers today

Commodity Prices

2021 Crop Yields

Favorable interest rates

Potential Negatives for Land Market

Changes in Tax Policy?

Increased volume of farms offered to the market

Farmers are primary buyers, but investors are

being very competitive at auctions

Questions?