(Radio Iowa) – The annual Iowa State University Extension farmland survey shows land values statewide increase by three-point- seven percent an acre. I-S-U’s Rabail Chandio oversees the survey. “This minor increase is the sixth increase in the last seven years. The only exception to that was last year when we experienced a decline, again a minor one,” Chandio says. The increase brings the statewide average this year for an acre of farmland to 11-thousand-549. She says when you consider inflation, land values are holding steady. “In inflation adjusted terms, we actually see a decline. Overall. I would really classify this change as about stability in the land market rather than growth rather than broad based growth,” she says.

Six of the nine crop districts reported increases in land values. “The highest increases are observed in the northeast corner and the east-central corner and the northwest corner. These are the top three districts reporting highest increases in land values,” Chandio says. “And these are also the areas that are more prone to livestock activity, animal operations within Iowa.” The crop district in the northeast corner of the state saw a land value increase of four-point-one percent. Chandio says the money made from cattle was better than for crops. “The most respondents reported more difficult situations within the crop sector, while the dairy farmers or the cattle sector experienced better gains or better prices this year,” she says. Chandio says the lack of available farmland for purchase helped keep prices up.

“The most positive influence on the land markets again this year was a limited supply of land. Cited as a major positive factor by 21 percent of the responses,” she says. The top negative factor in the value of farmland are the continued low commodity prices. “This factor was cited by 32 percent in our responses…followed by high interest rates, higher input costs, uncertainty around trades and tariffs, as well as the struggles with depleting cash and credit reserves,” she says.

O’Brien County once again has the highest county-level land values at 16-thousand-269 dollars an acre. And the lowest land values are again reported in Appanoose County that stand at six-thousand-679 dollars an acre.