From neighborhood to neighborhood, there are ranges in value for the same quality land. Many factors influence local values including the number of recent land sales, influence of local livestock production, and recent crop production results. The highest-quality farms from a production standpoint (highly productive soils, solid fertility and drainage, and high “farm-ability”) continue to outperform those farms with poorer soils, waterways or other obstructions.
Across Iowa, there is also interest in farmland from both local and non-local investors. Some are seeking diversification for their overall investment portfolios; others are seeking to complete 1031 tax-deferred exchanges after having sold land in more urban areas.