The Iowa Chapter of REALTORS® Land Institute announced the results of its September 2017 Land Trends and Values Survey recently, showing a statewide average increase of cropland values of 2.0 percent for the March to September 2017 period. Combining this increase with the 0.9 percent increase reported in March 2017 indicates a statewide average increase of 2.9 percent from Sept. 1, 2016 to Sept. 1, 2017.
“The survey shows the first full-year statewide increase in land values since 2013, indicating some current stability,” said Kyle J. Hansen, real estate broker for Hertz Farm Management and chairman of the survey committee.
All but one of the Iowa crop reporting districts showed an increase in the average farmland value. The districts varied from a -0.5 percent decrease in the south-central district to a 3.6 percent increase in the northeast district since March 2017.
Hansen reported that there are many factors contributing to current farmland values. “Major factors include: lower commodity prices, limited amount of land on the market, and growing conditions in the regions. Lack of stable alternative investments, cash on hand, and increasing interest rates also play a role,” he said.
The full survey summary is available at www.rlifarmandranch.com. Participants in the survey are specialists in farmland, and were asked for their opinions about the current status of the Iowa farmland market. Participants were asked to estimate the average value of farmland as of Sept. 1, 2017. These estimates are for bare, unimproved land with a sale price on a cash basis.
This survey has been conducted in March and September since 1978 by the Iowa REALTORS® Land Institute Chapter, which is an affiliate of the National Association of REALTORS® and is organized for REALTORS® who specialize in farm and land sales, management, development and appraisal.
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