The annual survey from Iowa State University shows farmland values increased almost 24-percent over last year for an average cost per acre of $8,296. The 23.7-percent increase marks the third straight year the land values have increased by 15-percent or more.
The survey notes this is significantly higher than the 18-percent increase reported by the Chicago Federal Reserve Bank in October. ISU economist, Mike Duffy says the difference in survey estimates could be due to values increasing more rapidly in the past few months than earlier in the year.
He says better than expected crop yields and the level of land sale activity due to the proposed changes in land related taxes contributed to the increasing values.
O’Brien County had an estimated $12,862 dollar average value, the highest average county value. O’Brien County also had the highest percentage increase and highest dollar increase in value, 35.2-percent and $3,348, respectively. Osceola, Dickinson and Lyon counties also saw 35.2-percent increases.