Continuing with the 2022 Iowa Farmland Values blog series, we will use the 2021 Farmland Value Survey to highlight average farmland characteristics and production costs in and across Adair, Madison, Warren, and Jasper Counties. If you are interested in acquiring similar information, contact your local extension office or land grant institution within your state.

Data compiled from *2021 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and *Iowa State University Extension and Outreach File C2-10 in Ames, Iowa.

SUCCESSFUL SALES IN ADAIR COUNTY, IOWA:

Of the 364,600 total acres in Adair County, the average Corn Suitability Rating 2 (CSR2) for the 334,850 acres of farmland within the county is 64 with an average 2021 farmland value of $7,159 per acre, which is a 27.1% increase from $5,634 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($7,159) by the Adair County CSR2 average (64), which equals $111.86 per CSR2 point. 

Average cash rent per tillable acre across Adair County is $213 ($186-$241). The 2017-2021 average corn and soybean yield was 168 and 51 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.27 for corn and $4.18 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 per bushel, respectively.

The capitalization rate, or also commonly referred to as cap rate, is the rate of return on a real estate property based on the income that the property is expected to generate for the landowner. The cap rate can help evaluate and compare the risk of one property or market to another, where it depends on demand, available inventory within the area, and specific type of property. The cap rate for Adair County, Iowa farmland is around 2.98%, or an expected return on investment of just shy of three percent.

Data compiled from *2021 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and *Iowa State University Extension and Outreach File C2-10 in Ames, Iowa.

SUCCESSFUL SALES IN MADISON COUNTY, IOWA:

Of the 360,400 total acres in Madison County, the average Corn Suitability Rating 2 (CSR2) for the 271,017 acres of farmland within the county is 60.8 with an average 2021 farmland value of $7,839 per acre, which is a 25.7% increase from $6,236 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($7,839) by the Madison County CSR2 average (60.8), which equals $128.93 per CSR2 point. 

Average cash rent per tillable acre across Madison County is $214 ($179-$254). The 2017-2021 average corn and soybean yield was 177 and 53 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.21 for corn and $4.04 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 per bushel, respectively.

The capitalization rate, or also commonly referred to as cap rate, is the rate of return on a real estate property based on the income that the property is expected to generate for the landowner. The cap rate can help evaluate and compare the risk of one property or market to another, where it depends on demand, available inventory within the area, and specific type of property. The cap rate for Madison County, Iowa farmland is around 2.73%, or an expected return on investment around two and three-quarters percent.

Data compiled from *2021 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and *Iowa State University Extension and Outreach File C2-10 in Ames, Iowa.

SUCCESSFUL SALES IN WARREN COUNTY, IOWA:

Of the 366,900 total acres in Warren County, the average Corn Suitability Rating 2 (CSR2) for the 247,153 acres of farmland within the county is 57.3 with an average 2021 farmland value of $9,021 per acre, which is a 29.2% increase from $6,982 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($9,021) by the Warren County CSR2 average (57.3), which equals $157.43 per CSR2 point. 

Average cash rent per tillable acre across Warren County is $215 ($188-$245). The 2017-2021 average corn and soybean yield was 172 and 51 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.25 for corn and $4.22 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 per bushel, respectively.

The capitalization rate, or also commonly referred to as cap rate, is the rate of return on a real estate property based on the income that the property is expected to generate for the landowner. The cap rate can help evaluate and compare the risk of one property or market to another, where it depends on demand, available inventory within the area, and specific type of property. The cap rate for Warren County, Iowa farmland is around 2.38%, or an expected return on investment of just shy of two and one-half percent.

Data compiled from *2021 ISU Land Value Survey conducted by the Center for Agricultural and Rural Development (CARD) and *Iowa State University Extension and Outreach File C2-10 in Ames, Iowa.

SUCCESSFUL SALES IN JASPER COUNTY, IOWA:

Of the 468,700 total acres in Jasper County, the average Corn Suitability Rating 2 (CSR2) for the 378,175 acres of farmland within the county is 68.5 with an average 2021 farmland value of $9,889 per acre, which is a 24.5% increase from $7,943 since 2020. To determine the CSR2 price per point average, divide the average farmland value ($9,889) by the Jasper County CSR2 average (68.5), which equals $144.36 per CSR2 point. 

Average cash rent per tillable acre across Jasper County is $280 ($248-$316). The 2017-2021 average corn and soybean yield was 214 and 61 bushel per acre, respectively. The average rent per bushel of crop yield is calculated by cash rent divided by average crop yield expected, which is $1.31 for corn and $4.59 for soybeans. Commodity markets have continued to rise with current cash corn and soybean prices over $7.50 and $17.00 per bushel, respectively.

The capitalization rate, or also commonly referred to as cap rate, is the rate of return on a real estate property based on the income that the property is expected to generate for the landowner. The cap rate can help evaluate and compare the risk of one property or market to another, where it depends on demand, available inventory within the area, and specific type of property. The cap rate for Jasper County, Iowa farmland is around 2.83%, or an expected return on investment of just over two and three-quarters percent.

To get in contact with someone about your Dallas, Boone, Greene, or Guthrie County farm in Iowa, please contact Matt Adams (515.423.9235; Matt@PeoplesCompany.com) or Doug Bear (515.745.3192; Doug.Bear@PeoplesCompany.com).

Download PDF Handout: Adair County, Iowa
Download PDF Handout: Madison County, Iowa
Download PDF Handout: Warren County, Iowa
Download PDF Handout: Jasper County, Iowa