The value of Iowa farmland continues to rise. Troy Louwagie with the Iowa Farm and Land Chapter Number 2 Realtors Land Institute, released results of their latest farmland survey on Monday. Louwagie says Iowa farmland prices rose 7.1 percent in the six month period ending September first.
The highest priced farmland is located in central Iowa, averaging $5,064 an acre. The Land Institute places Iowa farmland average prices in three categories, depending on the quality of the cropland. Louwagie says the average price for the highest quality cropland in Iowa is $4,655 dollars an acre.
Louwagie credits the increase in Iowa farmland values to higher corn and soybean prices from the increased demand from ethanol and biodiesel plants. He says there’s also not a lot of farmland for sale. Since last fall, Iowa farmland prices have jumped a record 20.7 percent.