The volume of sales after a very active real estate market in 2022 & 2023 has dropped back to a more normal flow. We looked at results of “cropland only” land sales from the first of the year through the end of June. These parcels were 85% or more tillable with no substantial building improvements within our trade territory. It showed 9,049 acres were sold so far in 2024 compared to 11,727 acres at the same point in 2023. It is typical to see most land auctions occur in the second half of the year.
Staying focused on 85% or more tillable land, there were 102 sales which met this criteria. Of those sold so far this year, we found the average sales outcome to be $14,390 per acre with a standard deviation of $4,000. That would place most sales between $10,000 and $18,000 per acre. We’ve noted seven sales of $20,000 per acre or higher with the highest at $29,600 in Sioux County. Most of these occur in far northwestern Iowa or places which have historically shown exceptional strength in land values.
Land Value Surveys
The most recent land value survey is the semi-annual report released by the Realtor’s Land Institute in mid-March (values as of March 1st). This survey of brokers and appraisers’ opinions divides the state into the nine crop reporting districts designated by USDA. The six-month change in land values ranged from 2.1 to 4.7% lower around the region. The state was 3.1% lower. The Federal Reserve Bank of Chicago’s latest survey placed western and north-Central Iowa at +4% to -7% for the first quarter of the year. South Dakota State University Extension land value survey was published in May. This year, the survey was 12.1% higher for the entire state. The southeastern region was 13.6% higher. Following are two tables of selected “good” farmland in South Dakota and Iowa which have sold recently in the region.
