(Audubon) A new record land sale was recorded in Audubon County this morning.
Southwest Iowa Real Estate Company sold 80 acres in Cameron Township for $11,900/acre. The previous record was $10,400 on a farm that they sold in August.
Meanwhile, the September 2012 Iowa Farm and Land Chapter land trends and values survey was released today. The results of this survey showed a statewide average increase of cropland values of 7.7% for the March 2012 to September 2012 period. Combining this 7.7% increase with the 10.8% increase reported in March 2012 indicates a statewide average increase of 18.5% for the year from September 1, 2011 to September 1, 2012.
All nine Iowa crop reporting districts showed an increase. The districts varied from a 5.0% increase in SC Iowa to a 10.8% increase in SW Iowa for the March 2012 to September 2012 period.
The average price of high quality cropland in southwest Iowa averaged $10,083 and acre, medium quality, $8,894 an acre, and low quality cropland $4,800 an acre.
Factors contributing to the increase in farmland values include: strong commodity prices, favorable long term interest rates, and limited amount of land offered for sale. Other factors include: lack of stable alternative investments, and fear of inflation. Concerns that could affect farmland value in the future include: higher input costs, increase in interest rates, larger amounts of land being offered for sale, and continued uncertainty of the U.S. and world economy.
The Iowa Farm & Land REALTORS® farmland value survey has been conducted in March and September since 1978. This survey plus the RLI Farm and Ranch Multiple Listing Service are activities of REALTORS® specializing in agricultural land brokerage on a daily basis.
September 27, 2012