(Ames)– Iowa State University Extension’s annual survey shows a surge in the estimated value of farmland that hasn’t been seen in a decade.
I-S-U economics professor Wendong Zhang (WHEN’-dong john) says the statewide average as of November is up 29 percent. The nominal land value of nine-thousand-751 dollars an acre is a record since I-S-U starting recording data in 1941.
Zhang says the nominal value is higher than the 2013 land value peak — but when adjusted for inflation — it would be an increase of 21 percent. He says the last time we have seen the land value changes increase close to or higher than 30 percent was in 2011 when it went up more than 31 percent.
The top quality farmland increased 30 percent, the middle went up 27 percent and the low quality increased by 26 percent. Zhong says the price of corn and soybeans was a big driver in the prices.
