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Iowa farmland values shoot up 20 percent in 6 months
Iowa Farmer Today ^ | Tuesday, March 22, 2011 4:08 PM CDT | By Gene Lucht

Posted on 03/23/2011 7:32:39 PM PDT by DeaconBenjamin

DES MOINES --- Iowa farmland values shot up 19.7 percent in the past six months and a total of 25.4 percent in the past year, according to the latest survey from the state’s ag land realtors.

The Iowa Farm and Land Chapter #2 REALTORS Land Institute released the results of its survey March 22 and it showed just about what everyone expected n land values jumped dramatically in the past few months.

That’s no surprise to farmers or realtors, according to Troy Louwagie, a realtor in Mount Vernon who runs the survey. Everyone knew ag land values have gone up, Louwagie says. The only question was how much.

The answer: A lot.

The six month and one year percentage increases were the largest since the institute began its survey in 1978, although Iowa State University Economist Mike Duffy, who also surveys land values, says the percentage increases were higher in the 1973 to 1975 time period.

The biggest increases came in high quality cropland and the areas showing the biggest increases were generally in Western and Northern Iowa.

Louwagie and other realtors say that may be in part because of good crops in Northwest Iowa last year, but more of it may be due to the fact the basis has narrowed in that part of the state as ethanol plants have been built and livestock production has grown. As a result, there was more room for improvement than in parts of the state that had previously benefitted from proximity to the shipping terminals on the Mississippi River.

The statewide average price for high quality land jumped from $6,128 in September to $7,389 in March. The increases were smaller for lower quality land and were much smaller for pasture or timber. For example, the state average price for timber rose from $1,823 six months ago to $1,995 now.

The survey does not provide a county-by-county number, but it does break down the results by crop reporting districts. The biggest jump came in West Central Iowa, where overall prices leaped by 26 percent in the past six months. The smallest increase came in Central Iowa, where prices still jumped 15.9 percent.

The figures for high quality cropland for each district are as follows:

Central, increase from $6,556 to $7,747;
East Central, increase from $6,348 to $7,705;
North Central, increase from $6,137 to $7,308;
Northeast, increase from $6,240 to $7,408;
Northwest, increase from $6,768 to $8,193;
South Central, increase from $4,908 to $5,904;
Southeast, increase from $6,033 to $7,229;
Southwest, increase from $5,741 to $6,670;
West Central, increase from $6,407 to $8,165.


TOPICS: Business/Economy; Government; News/Current Events; US: Iowa
KEYWORDS: agriculture; economy; food; iowa; organic

1 posted on 03/23/2011 7:32:41 PM PDT by DeaconBenjamin
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To: DeaconBenjamin
A run on farmland? Does not surprise - does it?

Sounds like people are preparing for the storm.

2 posted on 03/23/2011 7:36:30 PM PDT by Caipirabob ( Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: DeaconBenjamin

From what I hear from my friends in Iowa—the Chinese are buying the crap out of the farm land.


3 posted on 03/23/2011 7:38:03 PM PDT by WKUHilltopper (Fix bayonets!)
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To: DeaconBenjamin

Per acre prices? Whoa!


4 posted on 03/23/2011 7:40:34 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --"Deacon," "Waterworld")
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To: DeaconBenjamin

5 posted on 03/23/2011 7:44:20 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: DeaconBenjamin
Q:How come the bills on farmer's baseball caps are always bent in a curve?

A:From looking in mailboxes all day for government checks.

6 posted on 03/23/2011 8:03:22 PM PDT by Last Dakotan
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To: DeaconBenjamin

Because pf Ethanol distortion, or because of food?


7 posted on 03/23/2011 8:10:03 PM PDT by montag813 (http://www.facebook.com/StandWithArizona)
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To: montag813
Because pf Ethanol distortion, or because of food?

Because they ain't makin' no more of it.

8 posted on 03/23/2011 8:12:21 PM PDT by EternalVigilance (Pay heed to your principled position and you won't have to worry about your political position.)
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To: DeaconBenjamin
If anyone followed our last foray into double digit inflationary times, farmland all over the country, especially the Midwest skyrocketed. Jimmah Carter's misery index is going to make this next period of inflation look like a Sunday School picnic. And then the bottom rocked many farmers into loosing their land.

Beware! This is not the greatest of news. Far from it!

9 posted on 03/23/2011 9:09:46 PM PDT by ImpBill ("America ... where are you now?" signed, a little "r" republican!)
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To: ImpBill

Yep, because they were paying 20% interest for their money too.


10 posted on 03/23/2011 9:35:04 PM PDT by tiki
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To: tiki

Bingo!


11 posted on 03/23/2011 9:50:44 PM PDT by ImpBill ("America ... where are you now?" signed, a little "r" republican!)
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To: DeaconBenjamin; familyop

The leftist useful idiots want the land in that area to be too expensive to purchase for homesteading types, and the ones who do get it will be “nudged” into allowing it to lay fallow. You know, to save the planet from CO2. You may find this Sierra Club(gag).pdf interesting.

Cliffs Notes breakdown;

Ethanol: Need more.(?)

Farming: Bad.

Livestock: Bad.

Loss of Conservation Reserve Land: Bad.

Agribusiness in general: Bad.

Food with any Corn-based ingredients: Bad.

Reduced use of Corn by Livestock producers: Friggin Awesome.

Poor people affected by surging food costs: Eff em!

Solution to everything: Sustainable Development

www.sierraclub.org/energy/downloads/IowaBiofuelsReport.pdf


12 posted on 03/23/2011 10:26:32 PM PDT by wheresmyusa (FTUN)
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To: ImpBill

commodities for anti-inflationary hedge.

chinese- much cash-on-hand, not stupid.


13 posted on 03/23/2011 11:31:14 PM PDT by SteveH (First they ignore you. Then they laugh at you. Then they fight you. Then you win.)
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To: SteveH
chinese- much cash-on-hand, not stupid.

Getting value for dollars while they still can.

14 posted on 03/24/2011 3:58:58 AM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: EternalVigilance
“Because they ain't makin’ no more of it. “

I remember hearing that line a lot. In the 1980’s right before the crash.
It will happen again unfortunately. I hate to see Iowa getting set up to go through this again.
The 80’s caused a lot of pain here.

15 posted on 03/24/2011 4:07:10 AM PDT by HereInTheHeartland (Yes We Can, have smaller government)
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To: HereInTheHeartland

Yeah, I know. I lived it.


16 posted on 03/24/2011 5:46:39 AM PDT by EternalVigilance (Pay heed to your principled position and you won't have to worry about your political position.)
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To: HereInTheHeartland
Dad dodged that bullet in the 80’s, but not by much. Now my cousin is setting himself up for a big fall. Sad thing is my Grandpa always told us to be wary, and my cousin forgot that.
17 posted on 03/24/2011 7:26:48 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum
I have thought about putting together a archive of all the newsletters, magazine articles, etc from before the 80’s crash.
I was at Iowa State when things started falling apart as an ag student.
I know many good people who were hurt badly from what happened.
It feels like it will all happen again; but no one sees it.

I remember specifically hearing all the reasons back then why land prices would stay high. Some were: “they are not making any more of it”, “farmland is disappearing because of urbanization”, “have to feed the world”, a subset of that “China”, “investors taking their money out of equities markets and into “real assets””.

There were more but can't recall them.

18 posted on 03/24/2011 7:45:42 AM PDT by HereInTheHeartland (Yes We Can, have smaller government)
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To: HereInTheHeartland

Last year, and my cousin leveraged a few 100K in farm land, I reminded him of that. He just said that things were different now and that he had to grow to survive.

Honestly I hope he guessed right, but my uncle told me that they are one bad harvest from losing most of it.


19 posted on 03/24/2011 8:10:38 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: WKUHilltopper

I’m in Iowa and have not heard that.


20 posted on 03/24/2011 9:10:25 AM PDT by Conservativegreatgrandma
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To: Conservativegreatgrandma

These folks I know live near Cedar Falls and Waterloo.


21 posted on 03/24/2011 11:29:51 AM PDT by WKUHilltopper (Fix bayonets!)
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