The Pros and Cons of Buying Land in Iowa in 2026

Buying land in Iowa can still be a smart long-term play—especially if you understand how the market is shifting in 2024–2026 and what that means for pricing, competition, and risk. Iowa remains a top U.S. agriculture state with strong demand for productive acres, but values can move in smaller increments (or dip) depending on commodity prices, interest rates, and farm profitability. The best outcomes come from matching the right parcel to your goals—income, appreciation, recreation, or legacy planning—and doing disciplined due diligence.

Current Snapshot: Iowa Land Values and Market Momentum (2024–2026)

Iowa land values have recently moved through a “readjustment” phase rather than a straight-line climb:

• Statewide values dipped before stabilizing: Iowa farmland values decreased 3.1% in 2024 from 2023, then rose slightly in 2025. According to the Iowa Farm Bureau (citing Iowa State University Land Value Survey), average farmland value increased 0.7% (up $82) to $11,549 per acre in 2025.
• Top-tier ground continues to command a premium: High-quality Iowa farmland averaged $14,030 per acre in 2025, up 0.7% (or $101 per acre) from 2024, per the Iowa Farm Bureau (citing Iowa State University Land Value Survey).
• Some near-term softness shows up in benchmark tracking: Iowa benchmark farmland values declined 1.50% over the 6-month period entering 2026 and declined 1.80% over the 1-year period entering 2026, according to Farm Credit Services of America.
• Cropland benchmarks also eased: Iowa benchmark cropland values declined 1.60% over the 6-month period entering 2026, per Farm Credit Services of America.
• Benchmark “average” values may differ from prime-acre sale comps: The average dollar value of all benchmark farms in FCSAmerica at the close of 2025 was $8,299 per acre, according to Farm Credit Services of America.

Takeaway: Iowa remains expensive relative to many regions, but the data points to a market that is pricing more carefully—rewarding quality, penalizing weak fundamentals, and reacting faster to profitability and financing conditions.

Pros of Buying Land in Iowa

1) Long-Term Demand Supported by Iowa’s Ownership Profile

Demographics matter in land markets because they influence supply. In 2025, people aged 65 and older own 66% of Iowa farmland, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey). That concentration can increase the odds of transitional sales and estate-driven turnover—creating opportunities for prepared buyers.

2) A Financially Resilient Landowner Base

Lower leverage can reduce forced selling during downturns. In 2025, 84% of Iowa farmland is debt-free, per the Iowa Farm Bureau (citing Iowa State University Land Value Survey). That doesn’t eliminate volatility, but it can support price stability because many owners are not under pressure to sell quickly.

3) Premium Pricing for High-Quality Acres

Iowa’s best soils continue to attract competitive bids. High-quality ground averaged $14,030 per acre in 2025, up 0.7% ($101 per acre) from 2024, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey). If your strategy targets top productivity and strong tenant demand, this premium segment has shown resilience even during market “cooling” periods.

4) Income Potential Through Leasing (Without Operating the Farm)

Many buyers don’t want to run equipment or manage day-to-day production—and they don’t have to. Iowa has an established culture of leasing that can support predictable income when paired with a well-written lease, realistic yield assumptions, and a strong operator. Landowners can also negotiate conservation practices, drainage upkeep, and soil-fertility expectations into the lease structure.

5) Multi-Use Value: Recreation, Habitat, and Conservation

Not every Iowa parcel is wall-to-wall row crop. Depending on the county and tract, buyers can combine farm income with hunting, fishing access, timber, riparian buffers, or conservation improvements—adding lifestyle and diversification value alongside the agricultural component.

Cons of Buying Land in Iowa

1) Prices Can Move Down as Well as Up

Iowa’s market is not immune to corrections. Iowa farmland values decreased 3.1% in 2024 from 2023, then ticked up in 2025, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey). If you buy at the wrong time—or overpay for weak soils, poor drainage, or a bad location—future appreciation may not bail you out.

2) Short-Term Softness Can Pressure Negotiations and Appraisals

Recent benchmark tracking shows mild declines entering 2026. Iowa benchmark farmland values declined 1.50% over the 6-month period entering 2026 and 1.80% over the 1-year period entering 2026, while Iowa benchmark cropland values declined 1.60% over the 6-month period entering 2026, according to Farm Credit Services of America. These movements can affect lender comfort, appraisal outcomes, and seller expectations—especially on marginal tracts.

3) Off-Market Deals and Local Networks Favor Insiders

Out-of-state and first-time buyers often face a steep learning curve. In many rural areas, land trades through private networks before it ever hits major listing sites. Without local relationships, buyers can miss deals, misread rental norms, or underestimate drainage and access issues.

4) Ownership Still Requires Active Management

Even if you lease the acres, you remain responsible for the asset. That means monitoring tile drainage, verifying conservation compliance, managing boundary questions, updating leases, and coordinating improvements. For absentee owners, those tasks often require a trusted local farm manager or strong tenant partnership.

5) Weather and Climate Risk Is Real

Iowa agriculture depends on weather. Flooding, drought stress, wind events, and early freezes can all affect yields and tenant profitability. Over time, these factors influence not only annual income but also soil health, input decisions, and long-run productivity.

How to Buy Land in Iowa: A Practical, Modern Checklist

1) Define Your Objective and Hold Period

Start by deciding what “success” means: cash rent income, long-term appreciation, 1031 exchange timing, hunting/recreation value, or a multi-generational legacy plan. Your objective drives what you can pay, how you structure the lease, and what due diligence matters most.

2) Underwrite Using Multiple Value Signals (Not Just One Number)

Iowa values vary widely by soil rating, field shape, drainage, and local demand. Use statewide and benchmark references as context, but ground-truth them against local comps and tract-specific fundamentals:

• Statewide reference: average Iowa farmland value was $11,549 per acre in 2025, up 0.7% ($82), per the Iowa Farm Bureau (citing Iowa State University Land Value Survey).
• Quality-tier reference: high-quality Iowa farmland averaged $14,030 per acre in 2025, per the Iowa Farm Bureau (citing Iowa State University Land Value Survey).
• Benchmark reference: the average dollar value of all benchmark farms at the close of 2025 was $8,299 per acre, according to Farm Credit Services of America.

3) Secure Financing and Plan for Liquidity

Land loans often require meaningful down payments and conservative underwriting—especially for raw, non-income-producing, or recreational tracts. Build in liquidity for repairs, tile work, lime and fertility adjustments, legal costs, and any improvements promised in the lease.

4) Source Deals Through Both Public Listings and Private Channels

Work with land agents who specialize in the county you want, and ask directly about upcoming auctions or quiet listings. If you are an out-of-state buyer, consider building a local team early: agent, lender, attorney, surveyor, and farm manager.

5) Run Due Diligence Like an Operator Would

Verify title, easements, and boundaries. Review soil maps, drainage history, conservation plans, access points, and tenant performance. Confirm whether any portions are prone to flooding or erosion. For leased land, evaluate the lease terms, tenant quality, and renewal likelihood.

6) Close Cleanly and Document the Management Plan

After closing, implement a simple operating system: annual lease review schedule, soil testing cadence, maintenance plan for terraces and tile, and a communication rhythm with the tenant or manager. Consistent oversight protects both income and resale value.

Final Thoughts

Iowa can reward land buyers with resilient demand, premium pricing for strong acres, and the ability to earn income through leasing—without running a farm operation. Recent data also reinforces the need to buy carefully: values fell 3.1% in 2024 and only inched up 0.7% to $11,549 per acre in 2025, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey), while benchmark indicators showed mild declines entering 2026, per Farm Credit Services of America. If you align the tract with your goals, price it with discipline, and manage it actively, Iowa land can remain a durable portfolio asset.

Frequently Asked Questions (FAQs)

Are Iowa farmland values still rising?

They have been mixed recently. Iowa farmland values decreased 3.1% in 2024 from 2023 and then increased 0.7% (up $82) to $11,549 per acre in 2025, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey).

What does “high-quality” Iowa farmland cost?

High-quality Iowa farmland averaged $14,030 per acre in 2025, a 0.7% increase (up $101 per acre) from 2024, per the Iowa Farm Bureau (citing Iowa State University Land Value Survey).

How leveraged are Iowa landowners?

In 2025, 84% of Iowa farmland is debt-free, according to the Iowa Farm Bureau (citing Iowa State University Land Value Survey).

Who owns most Iowa farmland?

In 2025, people aged 65 and older own 66% of Iowa farmland, per the Iowa Farm Bureau (citing Iowa State University Land Value Survey).

Are benchmark values signaling a slowdown entering 2026?

Benchmarks show modest declines. Iowa benchmark farmland values declined 1.50% over the 6-month period entering 2026 and 1.80% over the 1-year period entering 2026. Iowa benchmark cropland values declined 1.60% over the 6-month period entering 2026, according to Farm Credit Services of America.

What benchmark per-acre value does FCSAmerica report for Iowa?

The average dollar value of all benchmark farms in FCSAmerica at the close of 2025 was $8,299 per acre, according to Farm Credit Services of America.