Iowa Farm Ground Prices are STILL Going Up!

According to AgWeb.com, Iowa’s farmland increased 10.8% between September, 2011, and March, 2012.

The Iowa Farm and Land Chapter #2 REALTORS Land Institute (RLI) conducted a survey indicating a total statewide average increase of 23.7% for the year ending March 1, 2012, which was a combination of the previous gain of 12.9% reported in September and the increase made from then until March 1st.

This survey reported a statewide average prices of the following types of crop ground:

$9,370 /acre – high quality

$7,148 /acre – medium quality

$4,879 /acre – low quality

$2,418 /acre – non-tillable pasture

$2,064 /acre – timber

The most expensive ground averaging $10,656 /acre was located in the northwest district and the least expensive high-quality crop ground was in the south-central district, reporting and average of $7,089 /acre.

There are many factors which are contributing to the increase of farmland prices which include:

Strong commodity prices

Favorable long-term interest rates

Limited amount of land offered for sale

Lack of stable alternative investments

Livestock prices

Fear of inflation

If you would like to know what land prices are for Benton County and other areas, contact me.

I can show you what has sold recently, price per acre and what type of ground.