An acre of Iowa farm land now at $3,200

Discussion in 'Countryside Families' started by Larburlingame, Dec 19, 2006.

  1. Larburlingame

    Larburlingame Well-Known Member

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    From todays Des Moines Register:

    The demand for corn is pushing up prices of Iowa farmland to record highs, an Iowa State University Extension study says today.

    The average value of an acre of farmland in Iowa increased $290, or 10 percent, to an all-time high of $3,204 in 2006, said Mike Duffy, ISU Extension farm economist. This is the fourth year in a row with a new record high.

    The 2006 average value was the first time the price topped $3,000. The value topped a previous record of $2,914 reported last year. Duffy said values increased in all 99 counties in Iowa, with seven counties topping $4,000 an acre. Scott County hit out at $5,073 per acre, the highest ever recorded in the history of the survey.

    Duffy attributed the increases to the runup in grain prices. The demand for ethanol and exports has pushed corn prices over $3 a bushel. The need for corn has also increased land values and rents, Duffy said.

    For the first time in several years, the percentage of land sales to existing farmers, rather than non-farmer investors, increased this year.

    Duffy cited key differences from the 1970s, when land values increased rapidly but crashed in the 1980s.

    “The increases we are seeing today are coming at a time when Iowa land values have been increasing fairly steadily over the past several years,” he said in a statement. “Since 2000 Iowa land values have increased $1,347 per acre on average or a 73 percent increase. This is a substantial increase, to be sure, but it is no where near the over 125 percent increase in values from 1972 to 1975.”

    Values increased in all 99 Iowa counties and topped $1,400 an acre in every county for the first time since ISU began conducting the survey in 1941. Here’s a breakdown of the land values:
     
  2. mpillow

    mpillow Well-Known Member Supporter

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    Land in general all over....we bought 30 acres for $30k 3-4 years ago....the cleared house lot of 2 acres will go over $25k because of privacy and mountain views....We will be planting this lot to corn(for our own use) until we build....
     

  3. ebook

    ebook Crooked Gap Farm

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    This makes me sad because I live in Iowa and I would like to buy some land someday ... oh well, I guess I will keep on saving! My prayer is that this doesn't become the farm crisis all over again... Mike Duffy doesn't seem to think so.
     
  4. NWoods_Hippie

    NWoods_Hippie Well-Known Member

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    My Mother's farm land in East Central Illinois was just valued at $5000 an acre!

    Margie
     
  5. Selena

    Selena proud to be pro-choice

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    Two outside forces that are driving up IA farmland:

    1 - professionals with lots of money (doctors, dentists, lawyers etc.) use retirement money and/or other windfall money to buy farmland
    2 - a lot of the farmers who are selling to developers in IL are buying land in IA. I know one personally.
     
  6. suburbanite

    suburbanite Well-Known Member

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    gads. California farmland is well over $10K an acre.
     
  7. ThreeJane

    ThreeJane Me Love Your Face

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    Last year, the Myers family sold some of their farmland in the Rathdrum Prairie for $20k an acre (or thereabouts, he didn't want to say the exact amount in the newspaper article).

    That's about what things are going for here. Hope things level out soon, people can't afford to rent here for those prices! (Fortunately, I don't rent.)