Iowa Cropland Values Surge 19%
The value of Iowa cropland jumped nearly 19% between March and September of this year, according to the most recent survey of farmland professionals conducted by the Iowa Chapter of the Realtors Land Institute. The organization’s semi-annual survey findings come as no surprise as the land market has continually marked near- and new-record highs throughout the summer.
Officially, the survey pegs the six-month gain at 18.8%. That increase combined with the 7.8% rise marked the previous six months puts the annual gain at nearly 27%, say survey coordinators Matt Vegter and Elliott Siefert, Hertz Real Estate Services, Nevada Iowa.
Driving the strength in land values is the combination of strong commodity prices, positive crop yield prospects and continuing low interest rates, they say. Potential negatives going forward include potential changes in tax laws and a rise in the number of farm properties offered to the market.
On a crop reporting district basis, the northeast led all nine districts with ta 22.5% increase. The east-central district marked a 21.9% rise and a north-central posted a 20.7% gain. Looking at the districts on an annual basis, the northeast was still the leader with a 31.1% gain. The north-central district followed with a 30.3% jump and the east-central district posted a 29.2% gain. The lowest annual gain was marked by the northwest district with an annual increase of 22.5%.
The survey pegs the average value of high-quality cropland at $12,182 an acre, up $1,961 from March. It places the average value of medium-quality cropland at $9,315 an acre, up $1,421 from March and the value of low-quality cropland at $6,503 an acre, up $1,049 from March.
The gains in the value of cropland were noted in the demand for non-tillable pasture and timber ground, as well. The value of non-tillable pasture rose 14.1% to $3,723 an acre and the value of timber land increased 15.9% to an average of $3,379 an acre.
