NAMA Shortcuts
Member Directory
Best of NAMA 2012
Upcoming Events
Chapters
Agri-Marketing Conf
More NAMA












REALTORS: IOWA'S FARMLAND VALUE FALL 5%
Agri-Pulse reports:

Iowa farmland values dropped 5.4 percent during the past six months, according to a report released today, marking the end of a five-year run that saw land prices surge to record highs.

The average price of an acre of tillable crop land was $8,268, down from $8,690 during the six months ending September 1, according to the semi-annual survey from Iowa Realtors Land Institute.

"To me this is actually an encouraging number," Kyle Hansen, president of the Iowa Realtors Land Institute, said of the more than 5 percent drop in land values. "Three months ago, I would have expected a 7.5 to 10 percent decrease, but we have been very encouraged by the strength shown in the last 45 to 60 days."

Commodity prices have risen in recent weeks, he said, in part due to the turmoil in Ukraine, a major grain producer, which has helped stabilize land values.

Land values declined the most in southeast Iowa (down 8.4 percent) and remained the steadiest in southwest Iowa (down 2.1 percent).

Farmland values rose 1.2 percent from March to September 2013. The last time farmland values dropped was in 2009.

Despite softening prices, farmland values are still nearly double that of 2010, when tillable cropland sold for $4,268 an acre, according to the report.

The value of pasture and timberland rose in most parts of the state, driven by strong livestock prices and demand from hunters, Hansen said. The biggest gains were in southwest Iowa, where pasture prices rose 9.7 percent and timberland prices rise 28.4 percent in the past six months.

The number of farmland sellers has dropped in the past year, largely due to the lower prices, said Kirk Weih, an accredited land consultant with Hertz Farm Management.

"I believe sellers' expectations have not adjusted to the leveling or softening of the market," Weih said. "Sellers expectations are still in the spring of 2013, while buyers clearly understand that land values have softened because they are receiving lower commodity prices."


Search News & Articles
















Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © Copyright 2014, Henderson Communications LLC. | User Agreement