Iowa land values fall for third consecutive year

ISU study states that declining values were anticipated
     Average Iowa land values dropped 5.9 percent in 2016, from $7,633 to $7,183, marking the third consecutive year that values have dropped, according to an Iowa State University survey. The last minimum, three-year consecutive decline was between 1982-1986, a result of the agriculture bubble bursting following post-World War II production.
     When it comes to Franklin County, average land value per acre in November 2015 was $7,633 and fell to $7,538. Rates for high, medium and low grade farmland were $8,442, $6,992 and $5,164, respectively, with the average crop reporting area at $7,562.
     The ISU survey is based on a survey-based model, and uses 518 respondents providing 711 county land value estimates. Of those 518 respondents, 34 percent of them were made up of agricultural lenders, with an average 20 years of experience. Of the total respondents, 49 percent of them took advantage of the new online format of the survey. It is the only data source that “provides an annual land value estimate at the county level for each of the 99 counties,” according to the survey.
    Read the full article in the January 17 edition of the Hampton Chronicle.