Farmland values in Guthrie County decreased by about 2.7 percent between Nov. 2017 and Nov. 2018, according ot the annual Farmland Value Survey conducted by Iowa State University.
The farmland values here are also slightly lower than the state average. The value of an acre of farmland in Guthrie County is currently about $6,748. The average value of an acre of farmland in Iowa is now estimated at $7,264.
Statewide, average farmland values dropped by less than 1 percent this year. In 2017, the average value of an acre was $7,326.
According to the survey, this drop is the fourth decline over the past five years and is a 17 percent decrease from 2013.
“The recent decline is largely attributable to lower commodity prices, higher interest rates, and to some extent the trade disruptions. The magnitude of the decline is still very modest and overall the land market is largely stable,” according to the survey. “Many respondents cited limited land supply, strong yields, and low interest rates as positive factors influencing the land market. Two-thirds of the respondents reported no change or less sales compared to a year ago. In general, the survey respondents have an optimistic view regarding the strength of the future land market both one and five years from now.”
The survey also showed that the majority of farmland sales in 2018, 72 percent, were to existing farmers. Investors represented another 21 percent of land sales.
About the survey:
The survey was initiated in 1941 and is sponsored annually by Iowa State University. Only the state average and the district averages are based directly on ISU survey data.
County estimates are derived using a procedure that combines ISU survey results with data from the U.S. Census of Agriculture. Since 2014, the survey has been conducted by the Center for Agricultural and Rural Development in the Department of Economics at Iowa State University and Iowa State University Extension and Outreach.
The 2018 ISU Land Value Survey is based on 793 usable county- level land value estimates provided by 624 agricultural professionals.