(Le Mars) — Earlier this week, Iowa State University Extension and Outreach released the findings of its annual farmland values survey. In that study, ISU economist Wendong Zhang (Jong) reported that Iowa’s land values in some instances had increased up to as much as 30 percent from last year’s value. Bruce Brock is a local auctioneer with the Brock Auction Company of Le Mars and specializes in farmland sales. Brock says he agrees with the survey’s results, and says local land values have taken a significant jump.
Brock says land values have increased in part due to the rising commodity prices of corn and soybeans. He says there are many factors to consider as to whether the trend will continue in an upward direction. Brock believes the trend on land values may hold steady for a while.
The local auctioneer says for most of the land sales he has handled, the buyers are local farmers who want to expand their production. However, he says there have been others, not normally associated with farming, who are turning to purchasing farm ground as another investment.
Brock tells what the price of land per acre has been selling at during the last few months.
Brock says many of the farmland sales have been due to retirement or estate sales, and not due to foreclosures.
Brock says he noticed a couple of interesting statistics with the Iowa State University land value survey.
Since a vast majority of the land is owned by people above the age of 60 years, Brock anticipates within the near future of the next ten years, more land will be available for purchase.
The local auctioneer says the survey shows our rising land values indicate a strong farming economy, which he adds, “is wonderful for this area.”
