2024 Ag Index
May 7, 2024
Bank Iowa today released the results of its third annual survey of Iowa farmers. The Bank Iowa Ag Index tracks Iowa farmer sentiment on issues related to a range of topics — from the ag economy and labor challenges to the plans they have for the future of their individual farms.
As one of the leading independent ag banks in the state, Bank Iowa’s investment in market research reflects its promise to deliver consultative financial services to Iowa’s farmers and the range of communities that depend on and serve them. As Bank Iowa President & CEO Jim Plagge put it, “While we get a strong sense of farmer sentiment in daily conversations with our customers, there’s no substitute for good data.”
A full report contextualizing the survey data is available at bankiowa.bank/AgIndex. The below takeaways represent some of the 2024 survey’s most notable findings.
Succession Planning
Despite skyrocketing land values and increased demand for Iowa farmland, very few survey participants anticipate selling their farms anytime soon. A full 99 percent said they have no plans to sell in the next one to two years, despite the fact that four in ten said they are being solicited by purchasers at least once per year.
Ninety-two percent consider their operation a family farm, and the majority (79 percent) have set their sights on eventually transferring ownership to a family member. A sizable number (45 percent) described their current role as “helping the next generation take over the operation.”
Interestingly, though, among the farmers who admitted to working on their farm for more years than they expected, 44 percent said it was because there was “no clear successor or interest from the younger generation.” What’s more, about half (48 percent) don’t employ family members on the farm, which is prohibitive to keeping an operation in the family after the head of the operation retires or passes away.
Workforce Challenges & Technology Solutions
Just over a quarter of farmers (26 percent) employ workers on their farms. When asked about their biggest workforce challenges, 27 percent selected “finding qualified people” and “cost.” “General labor availability in my area” rounded out the top three challenges cited.
The use of technology to supplement labor and increase efficiency is a growing practice among farmers. Sixty-three percent report deploying automation on their farms, which is a significant increase over the 45 percent who said the same in 2023.
Farmers are, by and large, satisfied with the tech investments they’ve implemented. Ninety-four percent said technology is meeting their expectations. Ninety-one percent said the integration of technology has at least slightly (36 percent), if not significantly (55 percent), improved their output.
Ag Economy & Farm Performance
When asked how they believe their farm stands financially today compared to last year, the majority (52 percent) said “the same,” while four in ten said “better.” Eight percent said they felt their operation was in a worse position financially this year.
Farmers’ perception of their operations’ performance seems to align with their thoughts about Iowa’s ag economy. About half (48 percent) felt the Iowa ag economy is the same as the rest of the nation. The remaining participants were split between believing the Iowa economy is better (30 percent) or worse (22 percent) than that of other states.
Feelings about the economic strength of the market may be behind the cautious optimism detected in farmer’s plans to invest in improvements to their operations. The top three areas of the farm that Bank Iowa survey respondents plan to improve over the next 12 months include machinery and equipment (44 percent), infrastructure and buildings (31 percent) and farmland (24 percent). Enhancements are likely to be moderate, however, as nearly half (47 percent) said their approach to improvements over the coming year will be conservative.
“Being a farmer requires a certain amount of natural optimism,” said Calvin Bandstra, VP of lending at Bank Iowa. “The cautious optimism reflected in this year’s survey underscores the good-natured confidence that makes it so gratifying to work alongside Iowa farmers.”
About Bank Iowa
With more than $2 billion in assets, Bank Iowa ranks as one of the leading independent ag banks and the second-largest family-owned bank in the state. Farmers, families, and businesses access Bank Iowa’s products and services through more than 20 locations, as well as online and on mobile devices. To learn more, visit bankiowa.bank. Member FDIC. Equal Housing Lender.