Iowa Land Values Up Nearly 7% In Six Months
Sep 16, 2008
The value of an acre Iowa cropland rose 6.6% for the six month period ending September 1. That's according to the most recent survey conducted by the Iowa Chapter of the REALTORS Land Institute (RLI). Combining this increase with the 11% gain reported in March 2008 indicates that on average the value of Iowa cropland has risen by 17.6% statewide for the year ending September 1.
All nine Iowa crop reporting districts showed an increase. The districts varied from a 2.7% gain in the East Central Iowa Crop District to an 8.7% jump in the Southwest district. That's for the six-month period ending September 1. The RLI indicated the factors contributing to the increase in farmland values include: continued overall strength in corn and soybean prices, demand created by past expansion of ethanol plants, limited amount of land offered for sale, good crop yields and positive attitudes about agriculture. Other factors include favorable long-term interest rates and stronger cash rents. Concerns that could affect farmland values in the future, cited by RLI, include potential for more land coming on the market, increased fuel and fertilizer costs, and decreasing returns in the livestock industry.
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