Iowa farmland value has increased 29% since last year, according to the latest annual land value survey from Iowa State University’s Center for Agriculture and Rural Development. The trend is on par with farmland values across the country, where multiple states have seen record sales in 2021. Several factors have contributed to the rise in land values, included increased commodity prices, favorable interest rates, strong yields, strong demand with limited supply and government payments.

Overall, the farm economy is expected to grow by $22 billion from 2020 levels, up to $116.8 billion, the highest since 2013. Important to note, 82% of Iowa land is debt-free and 60% is owned by people ages 65 and older and one-third of U.S. farmland is expected to change hands over the next 15 years. Because of these factors, land value surges could continue, even as investors keep a close eye on potentially rising interest rates.

Read more on farmland values here.