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Latest Report Shows Continued Increase In Farmland Values

March 23, 2022 Steve Schwaller

(Lakefield, Mn.)– Iowa State University is out with its latest land value survey. Jim Nesseth of Extended Ag Services in Lakefield says it shows yet another big increase in farmland prices…

“And what they came out with and this again is no news flash, Iowa is up 28 percent; Minnesota was 26 percent in land cost this last year; South Dakota was up 23 percent. And then the rest of these states in the midwest, Illinois, Indiana, Nebraska, Kansas, Missouri, that range in increase was from 10 to 16 percent, so really some good increases. North Dakota where they had quite a bit of drought, that only went up three percent, so that’s the bargain state, I guess, if you want to look at buying some real estate. But no, land costs have gone up and there’s been some pretty wild prices. I know I just heard the other day some land around Sioux Center, Iowa went for $22,000 or $23,000 an acre.”

Nesseth says we may be near the peak, but he says it’s dependent upon several factors…

“Things may be leveling off a little bit if we get to some lower crop prices and profitability this coming year, and who knows what’s going to happen with the Russia/Ukraine thing, but interest rates could go up and stuff like that. So maybe this will slow down. I wouldn’t expect it to have a big increase again like we’ve had this past year, but it’s interesting to see that these land values, it’s really been in the news, these increased values.”

Nesseth says any changes associated with drought will also likely come into play with land values.

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