Farmland Values Decreased At Slower-Than-Expected Rates In 2016

Farm Credit Services of America has released the 2016 trends for Iowa, Kansas, Nebraska, South Dakota and Wyoming, and says they have seen farmland values decreasing at a slower-than-expected rate. The large 2016 corn and soybean crops through much of this region contributed to demand for quality farmland and helped shore profitability levels. Overall margins, however, remain tight according to Mark Jensen, chief risk officer for FCSAmerica and Frontier Farm Credit. The report shows that Iowa farmland values were dropping at a faster rate than any other states served, but there was some stabilization in the second half of 2016. The average price for an acre of Iowa farmland in 2016 was $8,123, 2.8 percent lower than 2015. Since the market peaked in 2013, the average price is down 17.3 percent.