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Iowa farm land value up 8.5% in last year, survey shows
The Iowa Farm and Land Chapter #2 REALTORS Land Institute is pleased to announce the results of our September 2010 Land Trends and Values Survey. Our REALTORS® Land Institute Chapter is an arm of the National Association of REALTORS® and is organized for REALTORS® who specialize in farm and land sales, management and appraisal. Participants in the survey are specialists in farmland and are asked for their opinions about the current status of the Iowa farmland market.
Iowa farm land increased 5.7% in value from March to September 2010, adding up to an 8.5% increase in the last year, according to the latest survey of ag realtors conducted by the Iowa Farm and Land Chapter #2 REALTORS Land Institute.
All 9 Iowa crop reporting districts showed an increase, according to a report from the Iowa Farm and Land Chapter #2 REALTORS Land Institute. 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.
(Chart courtesy Iowa Farm and Land Chapter #2 REALTORS Land Institute).
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,
- favorable long term interest rates.
Concerns that could affect farmland value in the future include an increase in interest rates and attractive alternative investments.