The average value of an acre of O'Brien County farmland took the silver medal in this year's Iowa State Land Value Survey.

Sioux County reigned supreme, averaging a price of $16,521 per acre. O'Brien County tallied $16,313 per acre, down 1.3 percent from $16,531.

Values in Clay County were down 0.4 percent from $13,943 to $13,887, while Osceola County's average was down 1.3 percent from $14,360 to $14,170.

Slight dips in northwest Iowa were buoyed by increases elsewhere. The survey reported a 3.7 percent increase to $11,835 per acre for average Iowa farmland values from November 2022 to November 2023. This represents a modest increase from last year, and the $11,835 per acre nominal land value is the highest-ever recorded by the survey.

The 2023 nominal land value is 36 percent higher than the 2013 peak in nominal land values, and the inflation-adjusted value, $9,131/acre in 2015 dollars, saw a 0.5 percent increase and is also the highest on record.

"The declining rate of increase in land values, along with falling values in select regions, is revealing a possible plateauing in the land market," said Dr. Rabail Chandio, ISU assistant professor of economics and Extension economist. "The downward pressures on land values are largely attributable to interest rate hikes, lower commodity prices, increasing input prices, and weather uncertainty."

Last year, O'Brien County ended Scott County's nine-year reign in the No. 1 spot. Now the top dog, Sioux County's average value increased $5 from the previous year – the smallest hike in the state.

Chanandio reported limited land supply, stronger-than-expected crop yields, readily available cash and credit, higher commodity prices earlier in the year, strong demand, including from investors, and a good farm economy supported the overall growth in Iowa land values. In general, nearly half of survey respondents expected modest declines in land values within the next year but are optimistic about the future of the land market, forecasting increases in five-year land values.

The survey also broke down the type of sales reported by respondents. Seventy percent of farmland sales were to existing farmers, of which existing local farmers captured 69 percent of land sales. Only 1 percent of sales were to existing relocating farmers. New farmers represented 4 percent of sales. Investors represented 24 percent of land sales, with 12 percent going to local investors and 12 percent to non-local. Other purchasers were 2 percent of sales.

The overall average in the 12-county Northwest Iowa Crop Reporting District was less than the state median with a net percentage decrease of 0.8 percent in 2023. Overall, the district reported an average value of $14,753 per acre – the highest in the state. The lowest was the South Central Iowa Crop Reporting District at $7,482 per acre.

Twelve of the 99 counties reported decreases in nominal land values and 45 counties reported a decrease in inflation-adjusted values, but 87 counties still report the highest nominal land values since 1950. For 42 counties, the inflation-adjusted values are also record-high and topped the previous peak in 2013.

ISU EXTENSION & OUTREACH GRAPHIC

The top figure in each county is the estimated Nov. 1, 2023 farmland value, while the bottom figure represents the Nov. 1, 2022 value.

The largest percentage decrease, 3.9 percent, was reported in Scott County, while the largest increase, 12.9 percent, was reported in Appanoose, Decatur, Lucas, and Wayne counties. Sioux County reported the lowest percentage increase at less than 1 percent. The largest dollar decrease was reported in Scott County, $630 per acre, while Marion County saw the largest dollar increase, $1,117 per acre.