Are you ready for the snow to blow? It’s hard to believe, but harvest is in the bin, and the cold year-end is almost upon us. As we prepare for the “off-season” and planning for 2026, it’s a good time to review what has or hasn’t changed in the Iowa farmland market.
When I compare today’s market to that of a year ago, I see several similarities and two big differences.
Let’s start with the similarities. First, the land market has been remarkably stable. According to several land value surveys, the market is flat — or maybe a couple percentage points down year over year, depending on the exact timing comparisons.
Second, while the Federal Reserve Board has cut short-term interest rates twice this fall, long-term mortgage rates have not changed all that much across recent months. Talking to most lenders, you still see a range of 6.5% to 7.5% for longer-term fixed-rate mortgages.
Third, profit margins remain tight, just like 2024. Relatively low commodity crop prices and still-sticky input prices have compressed margins to near-breakeven levels, assuming average production. Meaningful profits were only enjoyed in those regions that out-busheled this pressure, similar to last year. This reality also echoes the tight times from 2015 to 2019.
Finally, the volume of land that has been offered to the market in 2025 has been at or perhaps even slightly below 2024. This supply shortage, of sorts, has helped to maintain land prices in the face of the above pressures.
The two main differences I see? First, we changed presidential administrations early this year, and most things changed. Would you disagree with me if I said 2025 has been “all Trump, all the time”?
Whether good or bad, it’s been a roller coaster, including in commodity crop agriculture and our export business. This was a change from 2024, and the differences negatively impacted grain markets — especially for soybeans. There have been some positive rumblings from President Donald Trump’s late-October trade swing through Asia, including China’s reported commitment to buy our soybeans. Time will tell.
The second difference I see and sense in late 2025 is the continued drawdown in working capital for farming businesses. We entered the current cycle downturn a couple of years ago with very strong crop-sector finances.
But we’re beginning to see them tested. I suspect that many farm lenders will be having different conversations around operating lines of credit this winter. Some farming businesses may need to consider different ways to recapitalize their balance sheets in order to build a bridge to better operational days.
Thus far, surprising to some, good land continues to sell relatively well. Here’s a list of recent land sales:
Sioux County. Northwest of Hospers, ± 73 acres recently sold at public auction for $18,600 per acre. The farm consisted of ± 70 tillable acres with a Corn Suitability Rating index rating of 93.6, and equaled $207 per CSR2 point on the tillable acres.
Wright County. West of Belmond, ± 77 acres recently sold at public auction for $15,100 per acre. The farm consisted of ± 77 tillable acres with a CSR2 of 87.4, and equaled $173 per CSR2 point on the tillable acres.
Delaware County. South of Dyersville, ± 80 acres recently sold at public auction for $16,550 per acre. The farm consisted of ± 74 tillable acres with a CSR2 of 73.8, and equaled $242 per CSR2 point on the tillable acres.
Crawford County. Southeast of Vail, ± 53 acres recently sold at public auction for $14,600 per acre. The farm consisted of ± 52 tillable acres with a CSR2 of 91, and equaled $163 per CSR2 point on the tillable acres.
Poweshiek County. Near Brooklyn, ± 80 acres recently sold at public auction for $13,800 per acre. The farm consisted of ± 77 tillable acres with a CSR2 of 86.1, and equaled $166 per CSR2 point on the tillable acres.
Linn County. Northeast of Springville, ± 80 acres recently sold for $13,875 per acre. The farm consisted of ± 68 tillable acres with a CSR2 of 79.9, and equaled $204 per CSR2 point on the tillable acres.
Fremont County. Northeast of Sidney, ± 97 acres recently sold at public auction for $15,200 per acre. The farm consisted of ± 95 tillable acres with an average CSR2 of 89.1, and equaled $174 per CSR2 point on the tillable acres.
Wayne County. South of Allerton, ± 116 acres recently sold at public auction for $7,100 per acre. This farm consisted of ± 109 tillable acres with an average CSR2 of 53.6, and equaled $141 per CSR2 point on the tillable acres.
Washington County. South of Keota, ± 189 acres recently sold for $11,600 per acre. The farm consisted of ± 185 tillable acres with a CSR2 of 71.9, and equaled $165 per CSR2 point on the tillable acres.