The 2025 growing season is rolling. Throughout Iowa, we enjoyed one of the smoothest spring planting seasons in recent memory. An early calendar start was paused with a 10-day break because of widespread rains before comfortably concluding from mid- to late May. This should allow for clear comparisons between the early-planted and normal-planted crop. Now, the crop is growing fast and changing daily.
The Iowa land market continues to adjust and change as well. Grain prices have marginally improved in early 2025 compared with most of 2024, and the springtime government payment support helped inject some cash flow and confidence in the countryside.
However, I believe the biggest difference in the current land market is related to simple supply and demand. Demand for additional land continues to outpace supply.
So, when a decent farm comes to the market, there’s still enough demand to compete and drive a strong price. It’s an interesting dynamic because I also believe demand for land is overall lower today than it was 12 months ago. However, the supply of available farms is even comparatively lower today than 12 months ago. This has created a market that still has some price vigor.
The second-quarter Chicago Fed report effectively made the same point. Iowa land prices were reported level year over year, after factoring in a 4% first-quarter 2025 bump, which the report attributed to a supply shortage. The sales noted below are a testament to these ongoing market dynamics:
Sioux County. South of Rock Valley, +/- 80 acres recently sold at public auction for $20,500 per acre. The farm consisted of +/- 75 tillable acres with a Corn Suitability Rating index of 86, and equaled $254 per CSR2 point on the tillable acres.
Cerro Gordo County. West of Dougherty, +/- 80 acres recently sold via sealed bid for $15,513 per acre. The farm consisted of +/- 71 tillable acres with a CSR2 of 85.2, and equaled $205 per CSR2 point on the tillable acres.
Black Hawk County. On the south edge of LaPorte City, +/- 39 acres recently sold via sealed bid for $12,500 per acre. The farm consisted of +/- 38 tillable acres with a CSR2 of 84.3, and equaled $152 per CSR2 point on the tillable acres.
Greene County. West of Churdan, +/- 80 acres recently sold at public auction for $12,700 per acre. The farm consisted of +/- 75 tillable acres with a CSR2 of 87.5, and equaled $155 per CSR2 point on the tillable acres.
Hardin County. Southeast of Iowa Falls, +/- 153 acres recently sold at public auction for $14,400 per acre. The farm consisted of +/- 149 tillable acres with a CSR2 of 87.5, and equaled $169 per CSR2 point on the tillable acres.
Benton County. North of Belle Plaine, +/- 151 acres recently sold for $13,500 per acre. The farm consisted of +/- 149 tillable acres with a CSR2 of 82.7, and equaled $165 per CSR2 point on the tillable acres.
Adair County. South of Stuart, +/- 88 acres recently sold at public auction for $13,200 per acre. The farm consisted of +/- 70 tillable acres with a CSR2 of 78.8, and equaled $210 per CSR2 point on the tillable acres. Note: The nontillable land included a timber-lined creek that divided this farm.
Decatur County. Southeast of Leon, +/- 184 acres recently sold at public auction for $4,600 per acre. This farm consisted of +/- 81 tillable acres and a CSR2 of 33.5. The property has been used as a grazing pasture with two ponds, areas of heavy timber and timbered draws, along with a 40-foot-by-60-foot enclosed machine shed and a 12,000-bushel grain bin.
Des Moines County. West of Mediapolis, +/- 156 acres recently sold at public auction for $10,500 per acre. The farm consisted of +/- 134 tillable acres with a CSR2 of 78.5, and equaled $156 per CSR2 point on the tillable acres. The balance of the farm consists of timber and a pond.