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LAND VALUES<br />
“<strong>We</strong> are now at the cusp<br />
of another great period<br />
of farmland values, and<br />
if the economy bypasses<br />
a recession as planned,<br />
we should be able to end<br />
this era without a rapid<br />
collapse in land values.”<br />
— RABAIL CHANDIO<br />
12.8% to an average price of $10,460.<br />
After harvest, farmers had more money<br />
than they thought they would have after<br />
much concern about the impact the statewide<br />
drought might have on their crops,<br />
Sieren said. Decent yields can lead to<br />
desire to increase production.<br />
“There were a few key points to keep<br />
the market rolling,” Sieren said.<br />
Values in the state overall were up 3.7%<br />
to an average price of $11,835.<br />
“This modest (state) increase, following<br />
the dramatic 17% surge last year,<br />
means that Iowa farmland values, still at<br />
an all-time high since Iowa State started<br />
tracking the land value information in the<br />
1940s, have started to cool off,” Chandio<br />
said.<br />
Supply and demand are a crucial part of<br />
the equation.<br />
“My take is that inventory was very,<br />
very low. A few of the counties in the<br />
state only had one auction last year,”<br />
Sieren said. Overall, there were 150 fewer<br />
auctions last year in Iowa, or an average<br />
Rabail Chandio<br />
Iowa State University<br />
of about 2.5 fewer<br />
per month.<br />
So some potential<br />
buyers have<br />
money ready and<br />
are waiting for the<br />
right parcel, Hoenig<br />
said.<br />
“Everyone is<br />
holding back for<br />
higher quality,” he<br />
said.<br />
Realtors said that<br />
while prices aren’t<br />
climbing like they had been the past two<br />
years, they are on solid ground. It remains<br />
a good investment as an inflation hedge<br />
and from an appreciation standpoint.<br />
The farmland market has outperformed<br />
the S&P 500 over the last 40 years, Sieren<br />
noted.<br />
After three years of increases, Chandio<br />
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