Iowa and Illinois farmland value declines while Indiana, Ohio, and Missouri gain in 2015

posted on Friday, August 7, 2015

USDA released its annual Land Values report this week (August 6, 2015). Nationwide, farm real estate value averaged $3,020 per acre for 2015 which is an increase of 2.4 percent from 2014 values. The Southern Plains region shows the sharpest increase of 6.1% while the Corn Belt region shows a slight 0.3% decline. The highest farm real estate values are in the Corn Belt region at average of $6,350 per acre. The lowest average farm real estate values are in the Mountain region at average of $1,100 per acre.

Looking at the Corn Belt region, average farm real estate value in Iowa declined 5.9% to an average of $8,000 an acre. Illinois shows a slight 0.3% decline to $7,500 per acre. Indiana reports an increase of 2.9% to an average value of $7,150 per acre, and Ohio indicates a 3.6% increase to an average of $5,750 an acre. Missouri reports an increase of 8.1% to an average of $3,350 per acre.

Farm Real Estate per Acre

The average value of the Corn Belt region was $6,350 per acre in 2015, down 0.3 percent compared with $6,370 per acre a year ago. This decline represents the first such decline in the Corn Belt region since 2010 and reflects lower corn and soybean prices. Low agricultural commodity prices make farmland a less desirable investment.

Farm land is the major asset of the farm sector in Corn Belt. Hence, changes in the agricultural land values are a critical measurement of farm sector performances and financial well-being of crop and livestock producers in the Corn Belt.

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