Although it is not region-wide, there are some signs that farmland values in the Corn Belt have begun to stabilize. A report says Iowa farmland values rose 2 percent in the six months prior to September. Those same values are also 3 percent higher than at the same time last year. The Iowa Chapter of Realtors Land institute survey says that is the first increase in three years. Other Corn Belt states are showing steady to slightly lower values over the same time period. The report notes that the run-up in farmland value started in Iowa and then spread to other states. The downturn over the last couple years also began in Iowa and spread to the other states.
The overall volume of properties currently for sale remains tight, which the report says tends to be supportive for the higher-quality land for sale. The number of farmland properties for sale typically rises in the winter. However, if the overall volume stays low, that may actually help values in other states, especially in the Corn Belt, begin to follow Iowa’s lead and stabilize further.
Source: NAFB News Service