Top Iowa farmland prices nearing $3,800 per acre
In the past 12 months, farm ground across the state of Iowa has grown in value 5.3%. Just over half of this increase has come the past six months.
Leaders and members of the Iowa Farm and Land Chapter #2 Realtors Land Institute on Tuesday released the results of the group's September 2006 land trends and values survey.
Statewide, cropland values have gone up 2.9% since March. Previously, from September 2005 to March 2006, land values climbed 2.4%. Of the average land valuation in the past six months, the increase has varied fairly widely across the state, according to Iowa Farm and Land Chapter #2 Realtors Land Institute president Troy Louwagie.
"All nine Iowa crop reporting districts showed an increase. The districts varied from a 1.8% increase in southeast Iowa to a 4.0% increase in central and northwest Iowa for the March 2006 to September 2006 period," Louwagie said Tuesday. This differs from previous years slightly, as recently, southwestern and southern Iowa land values have gained value at a greater clip because of recreational value.
On average, Iowa land with a potential corn production of 160 bushels per acre or more is valued at $3,797/acre. This is compared to an average price of $3,800/acre for similarly high-quality farm ground in Illinois (as of August 2006) and $3,770/acre for high-CSR land in Indiana, according to the University of Illinois and Purdue University respectively. The percentage of price difference from six months ago to today is between approximately two and five percent for the three states.
Iowa Farm and Land Chapter #2
Realtors Land Institute
Survey of Iowa Farmland Values (in $ per acre)
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