Iowa land pros are more bullish than previously thought. In a special notice issued today correcting earlier data, the survey of 153 land professionals conducted recently at the Soil Management and Land Valuation Conference sponsored by Iowa State University (ISU) found attendees expect the state average value of farmland to reach $8,164 an acre by November 1, not the $7,688 an acre previously reported by event organizers. For perspective, the ISU annual land values survey pegged the value of an acre of state farmland at $6,708 as of November 1, 2011. If achieved, that would be an increase of 21.7% versus 2011.
In addition, the corrected findings indicate attendees look for the state average to reach $8,340 an acre by November 1, 2013, which is a 24.3% rise versus the 2011 figure. It represents only a 2% rise in 2013 if the anticipated price of $8,163 an acre is achieved by November 1, 2012. Attendees also indicated they expect an acre of Iowa farmland to reach an average price of $11,719 an acre by 2015 and $16,796 an acre by 2040.
The university has conducted the attendee survey in conjunction with the conference since 1964. The survey's track record has proven quite accurate with the only major variance occurring in 2008 when the financial market collapse struck in the fall. In 2010, the attendee survey missed the final ISU November 1 figure by just 3%. Last year, the attendee survey projected a 33% annual rise. The ISU survey found a 32.5% annual increase -- a miss of just 0.5%.
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