Land Value Update

A new Iowa Realtors Land Institute Survey of Farm Land Values shows a steady and controlled decrease in land values over the past 6 months.  The survey indicated that from September 2015 to March 2016 Iowa farmland values decreased by 5%.  In SW Iowa the decline was 5.9%.  This is consistent to what we are seeing in the market which shows a decreasing trend of 1%/month.  Land values continue to soften due to declining commodity prices.  So far the decrease has been steady and controlled primarily due to limited property on the market and strong demand from farmer and investor buyers.  I anticipate this steady decrease to continue into the near future as long as commodity prices stay under pressure.