Information from the latest survey by the Iowa State University Extension department shows most farmland remains in the hands of “locals” when it’s sold. Economist Wendong Zhang conducts the annual survey. “We find that 72 percent of the buyers are existing local farmers and another two percent are existing or relocating farmers. Investors account for roughly 20 percent, new farmers are only three percent,” Zhang says.

He says the land generally stays with families until someone decides that no longer want to farm. “Estate sales account for over half of the land sold,” Zhang says, “and retired farmers account for another 23 percent,” Zhang says. He says there are few young people who own farmland. “Land owners 65 or above own half of Iowa’s land. Landowners 75 and above own one third,” Zhang says.

While the latest survey showed the third straight drop in land prices, Zhang says it is still hard for new farmers to find the resources to get into farming. “This is a still a very capital intensive industry that is a barrier for new farmers to enter,” Zhang says.

He says there are some farm programs now available to try and help young people get into farming. Zhang isn’t expecting a lot of big changes though in the next several years in the ownership of Iowa farmland.

(Radio Iowa)