Iowa farmland value up 21% for year ending September 1st!

[Fishhead24]

Taking into account that one can rent this land rather easily to a good farmer that will increase ones dividends by 4-9% on top of the land appreciation has made this a very wise investment over the past 12 months...............


Values Up Nearly 21% For The Year Across Iowa

Iowa cropland values jumped 7.1% for the six-month period ending September 1, according to the mid-year survey of land values conducted by the Iowa REALTORS® Land Institute and released today. According to Troy Louwagie, Hertz Real Estate Services, Mt. Vernon, Iowa, and chair of the survey committee, participants in the survey are specialists in farmland who are asked for their estimate of the average value of cropland as of September 1, 2007. The estimates are for bare, unimproved land.

The survey found a statewide average increase in cropland values of 7.1%. Couple that six-month boost with the 13.6% burst the preceeding six months yields an explosion of 20.7% in cropland values for the year ending September 1. All nine Iowa crop reporting districts showed an increase, Louwagie said, with gains ranging from 4.1% in southwest Iowa to 9.8% in northwest Iowa.

Factors contributing to the increase in farmland values include: Higher corn and soybean prices, demand created by expansion of ethanol and biodiesel plants, limited amount of land offered for sale, good crop yields and positive attitudes about agriculture. The survey found 1031 tax deferred exchanges are still a factor in the land market, but at not the level seen two to three years earlier, Louwagie said.