(Audubon) The value of Iowa Farmland rose another 9.4-percent according to the latest semi-annual survey released by the Iowa Realtors Land Institute. According to the latest figures, the average price of Iowa farmland showed a 9.4-percent increase from September, 2012-March, 2013. If you combine the 9.4-percent to the 7.7-percent increase reported in September 2012, it shows an annual increase of 17.1-percent.
Lyle Hansen, Jr., of Southwest Iowa Real Estate in Audubon says the latest survey continues the upward trend in farmland values that we have seen in the past four-or-five- years.
“The continued strength is due to profitability and I think we still have farmers that have had some good years and have cash in their pockets and are looking to expand,” stated Hansen. “They also have machinery to farm extra acres and so they are adding farms.”
Hansen admits the increase may not be quite as sharp as it has been in the previous years.
“Maybe we have reached a plateau, and activity since the first of the year has slowed down a little bit,” said Hansen. “We had a lot of activity in 2012 with people wanting to get transactions done ahead of any changes in the capital gains rate.”
According to the survey, the average price of high quality farmland in southwest Iowa reached $10,875 and acre, medium quality, $8,156, and low quality farmland, $5,569.00 and acre. In west central Iowa, high quality farm ground is bringing on average $12,300 and acre, medium, $9,708, and low quality farmland, $6,823.00 an acre.
April 2, 2013
11:00 a.m. news