Iowa Farmland Value Increase in 2017 Why?
A recent study by Iowa State University reported that Iowa farmland value increased by 2 percent in 2017, breaking the previous 3 years of declined values. However, Iowa State advises that this could potentially be a “temporary break” in Iowa farmland value because of stagnant farm income predicted over the next few years. All of Iowa’s land districts reported an increase in value, except South Central where they reported a 1.6 percent loss. To understand why Iowa farmland values increased in 2017, check out the three reasons below.
3 Reasons Iowa Farmland Value Increased
- Limited supply: 2017 was a slow year for farmland sales. This results in an increase in the value of the farmland due to the low supply and high demand from farmers and investors.
- Low-interest rates: Iowa farmers and investors are more likely to purchase land with a low-interest rate. However, if interest rates rise within the next year this will likely put pressure on the land market- driving values down again.
- High yields: Because of the bin-busting yields farmers have been attaining, crop prices have remained low. Typically this would mean that land values would continue to decline, but because of the strong demand in the buyer market, we saw an increase in Iowa farmland value.
Iowa Farmland Value – Get a Valuation today!
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