An Iowa-based Realtors group finds in recent research that farmland values in the state are beginning to decline.
The REALTORS Land Institute – Iowa Chapter this week reported a statewide average decrease of cropland values of one percent for the September 2018 to March 2019 period.
Combining the decrease with the 1.7 percent decrease reported in September 2018 indicates a statewide average decrease of 2.7 percent from March 1, 2018 to March 1, 2019.
Farmland values, so far, have been thought to be the positive in the farm economy, keeping the deteriorating economic conditions from reaching a status seen in the 1980’s farm crisis.
Still, the report says major factors supporting current farmland values continue to include limited amount of land on the market, government compensation like the Market Facilitation Program, the new farm bill, and higher than expected crop yields in some locations.
Negative factors include trade uncertainty, decreasing levels of working capital, and slightly higher interest rates.
The REALTORS Land Institutes – Iowa Chapter farmland value survey has been conducted in March and September since 1978.