Survey: Iowa Farmers Dream of Preserving Legacy, Struggle to Find Clear Successors

WEST DES MOINES, Iowa--(BUSINESS WIRE)--Bank Iowa has released findings from its annual survey of Iowa farmers. The Bank Iowa Ag Index tracks sentiment on various issues, from the ag economy to plans for individual farms.

A report contextualizing the survey data is available at bankiowa.bank/agindex. Select findings are below.

Although farm values are soaring, most owners aren't planning to sell. Ninety-nine percent said they won't sell in the next one to two years, even though four in ten receive at least one offer a year.

Ninety-two percent consider their farm a family business, and 79% plan to transfer ownership within the family. However, of the farmers who have worked longer than expected, 44% attribute it to a lack of a clear successor or interest from the younger generation.

Twenty-six percent of farmers employ workers. The biggest workforce challenges are "finding qualified people" and "cost," both cited by 27%, while "general labor availability" was the third most common concern.

The use of technology to replace labor is increasing. Sixty-three percent of farmers now use automation, up from 45% in 2023.

Farmers seem satisfied with their tech investments. Ninety-four percent say technology meets their expectations, while 91% report at least a slight (36%) or significant (55%) improvement in output.

When asked about their farm's financial standing today compared to last year, 52% said it was the same, 40% said it was better, and 8% said it was worse.

Farmers’ perception of their operations’ performance seems to align with their thoughts about Iowa’s ag economy. About half (48%) 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%) or worse (22%) than that of other states.

Feelings about the ag economy may be behind the cautious optimism detected in farmers’ plans to improve their operations. Enhancements farmers plan to make are likely to be moderate, however, as 47% said their approach to improvements will be conservative.

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.