The value of Iowa farmland rose 5.7% during the six-month period ending September 1, according to the twice-a-year survey conducted by the Iowa chapter of the REALTORS Land Institute (RLI). Chapter members who took part in the survey were asked to estimate the value of bare, unimproved cropland. Pasture and timberland were also surveyed and the survey found these values rose 6.5% and 3% respectively. The pasture and timberland figures were not included in the overall figure for farmland.
Combining the survey's 5.7% increase with the 2.8% decrease in values reported in the RLI's March survey indicates a statewide average increase of 8.5% for the year ending September 1, 2010, says Troy Louwagie, ALC, Hertz Farm Management, Mt. Vernon, Iowa, who heads up the survey team for the RLI.
All nine of Iowa's crop reporting districts showed an increase. The districts varied from a 9.8% increase in northwest Iowa to a 2.4% increase in south central Iowa for the March 2010 to September 2010 period.
Factors contributing to the increase in farmland values include: limited amount of land offered for sale, higher commodity prices, lack of alternative investments, strong cash rents, and favorable long term interest rates. Concerns that could affect farmland value in the future include: an increase in interest rates and attractive alternative investments.
Click here for the survey data.
The Iowa RLI has conducted the farmland survey since 1978.
I will have more details in the next issues of my newsletter. If interested in seeing a copy of LandOwner, just drop me an email at email@example.com or call 800-772-0023.