Estimating dispersal distances from population genetic data provides an important alternative to logistically-taxing methods for directly observing dispersal. While methods for estimating dispersal rates between a modest number of discrete demes are well developed, methods of inference applicable to “isolation-by-distance” models are much less established. Here we present a method for estimating ρσ2, the product of population density (ρ) and the variance of the dispersal displacement distribution (σ2). The method is based on the assumption that low-frequency alleles are identical by descent. Hence, the extent of geographic clustering of such alleles, relatively to their frequency in the population, provides information about ρσ2. We show that a novel likelihood-based method can infer this composite parameter with a modest bias in a lattice model of isolation-by-distance. For calculating the likelihood, we use an importance sampling approach to average over the unobserved intra-allelic genealogies, where the intra-allelic genealogies are modeled as a pure birth process. The approach also leads to a likelihood ratio test of isotropy of dispersal, i.e. whether dispersal distances on two axes are different. We test the performance of our methods using simulations of new mutations in a lattice model and illustrate its use with a data set from Arabidopsis thaliana.