A recently released survey of Iowa land trends and values shows a statewide increase in cropland values of nearly 13-percent over the past six-months. The survey by the Iowa Farm and Land Chapter number Two of the Realtors Land Institute, shows a 12.9-percent increase in cropland values from March 2011 through September 1st. The estimates are for bare, unimproved land, with a sale price on a cash basis. Pasture and timberland values were requested from participants in the survey, as supplemental information.
In southwest Iowa, the value of High Quality Crop Land increased $643 per acre over the past six-months, to $7,555. Medium Quality Crop Land increased $531, to $5,837 per acre. Even Low Quality Crop Land increased more than $315 per acre, to $4,116. Non-tillable Pasture was valued at $2,328 per acre, which was a loss of $8. And, Timber acreage gained $17, with a value of $1,678 per acre. On average, land values were up 9.3-percent.
In western central Iowa, High Quality Crop land was valued at $9,085 per acre, which is an increase of nearly $1,050 over the past six-months. Medium Quality Crop Land was valued at $7,275, which was a slightly more than $850 increase. Low Quality Crop Land in West Central Iowa saw the least amount of increase per acre, at $316, averaging out to $5,260. Non-tillable Pasture fared better in the valuation in the West Central part of the state as compared to the southwest, by increasing just over $320 per acre, while Timber acreage increased modestly as well, to $2,160 per acre. On average, the West Central part of the state realized a 12-percent gain in tillable cropland values from March through September.
All nine crop reporting districts in the state showed an increase in land values, ranging from 8.5-percent in Southeast Iowa, to as much as 17-percent in northeast Iowa, from March 2011 to September, 2011. The Realtors Land Institute said factors contributing to the increase in farmland values included strong commodity prices, favorable long-term interest rates, and a limited amount of land being offered for sale. For more information, log on to www.rlifarmandranch.com.