After having fallen in each of the three previous years, the average value of an acre of farmland in Iowa saw an increase in 2017. The average statewide value of an acre of farmland is now estimated to be $7,326. This represents an increase of 2.0 percent, or $143 per acre, from the 2016 estimate.

Dr. Zhang said that limited land supply is the main factor driving this year’s increase in farmland values. “Commodity prices and farm income are still stagnant,” Dr. Zhang said. “I would not consider this a turn of the land market. Given the rising interest rates and stagnant farm income, I would not be surprised to see a continued decline in values in the future. This, to me, is a temporary break in a downward adjustment trajectory.”