Farmland values in the Raccoon River Valley have dropped for a second consecutive year.

According to the Iowa Land Value Survey, conducted by Iowa State University and Iowa State University Extension and Outreach, Dallas County saw the largest decrease of 5.36 percent to $8,150 per acre, Greene County dropped 4.49 percent to $8,257 per acre and Guthrie County had a 4.18 percent decrease to $7,340 per acre. Across the state, farmland prices have dropped 3.9 percent. The study averages the amount of value from high, medium and low-quality farmland.

After reaching historic highs in 2013, when values were averaging $8,716 per acre in the state, it dropped 8.9 percent to $7,943.

Some of the negative factors include lower commodity prices, high input prices, an uncertain agricultural future and cash-credit availability that led to the decline. The positive factors were low interest rates and high yields. Farmland prices don’t seem to be gaining any ground in the near future with stagnant commodity prices, a declining farm income forecast, a slowing Chinese economy and the potential for interest rate increases.

The survey was based on 514 usable responses that provided 708 county land value estimates.