Darnell Smith. P & S, Economics Department
Over the past two decades, the percentage of Iowa's agricultural land that is leased on a cash basis has roughly doubled, moving from 21 to 40% and agricultural land values have increased significantly over the last decade. Because of these rapid changes in tenure, farm equity, and cash flow risk, it is very important for landowners, renters, and lenders to have accurate estimates of current land values in their local area by land quality.
To obtain accurate survey data on agricultural land values for Iowa by quality and region, to calculate summary averages by county and land quality, and to disseminated that information to stakeholders by publication and through the extension web site.
A survey form was prepared and mailed out to interested farmers, landowners, agricultural lenders, real estate brokers, and professional farm managers around the state of Iowa. Approximately 600 responses were obtained and average land values were calculated for high, medium, and low quality cropland by county. A summary publication was prepared and results are posted on the extension web site.
The overall impact of this activity is that, by providing accurate information on agricultural land values and trends, all stakeholders involved will be able to make more informed financial decisions leading to increased business efficiency. Even with the results posted on the extension web site, roughly 400 respondents indicated they would like the summary publication mailed to them. This is a good indication of the public interest in having accurate information about current agricultural land values and trends in value.
101 - Strategic and Organizational Management Development for Iowas Farm Businesses
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July 8, 2006
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