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Farmland Value Continues To Go Up
Updated: Thursday, October 3 2013, 05:44 PM CDT DAVENPORT, IA (CBS 2/FOX 28) — The value of cropland across the state of Iowa continues to be on the rise, but slowing a bit. The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of cropland values of 10.6% for the year from September 1, 2012 to September 1, 2013. This follows an average increase of 18.5% for the year from September 2011 to September 2012; and an average increase of 32.6% for the year from September 2010 to September 2011. Overall, the strong upward movement in land prices has leveled out even though we have seen growth in values over the past six months especially in the East Central District, which covers much of the local market area. “Clearly the decrease in commodity prices and the potential for highly variable yields are slowing the increases in land value especially in medium to lower quality farms,” said Eric Schlutz, Realtor with Ruhl Farm&Land and Muscatine Manager for Ruhl&Ruhl REALTORS. The survey also attributed the current land values to an increase in long-term interest rates, 2013 growing conditions, a lack of stable alternative investments, large amounts of cash on hand and the limited amount of land on the market. For the survey, participants are asked to estimate the average value of farmland as of September 1, 2013. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information. Seven of the nine Iowa crop reporting districts showed an increase in the last 6 months. For local experts, the survey results were not surprising, said Dennis Stolk, Realtor with Ruhl&Ruhl REALTORS. “The best strength in the land market continues to be in the high quality, all tillable parcels, with some easing of the growth in values of the lesser quality parcels, as well as recreation land,” Stolk said. “Future direction of land values will be highly dependent on commodity prices for corn, soybeans, hogs and cattle, as well as interest rates and the general overall economic trend. “We are positioned in eastern Iowa and western Illinois to see good stable land values and do not anticipate a drastic movement downward or upward.” Ruhl Farm&Land, a division of Ruhl&Ruhl REALTORS, is focused on the sale, purchase and marketing of land, farms and acreages. Read More at: http://www.cbs2iowa.com/news/features/top-stories/stories/farm-land-value-continues-go-up-22831.shtml Continue reading
Iowa Farmland Values Increase
Updated: Oct 03, 2013 By Dan Howell – email Iowa farmland values increased 10.6% and the value continues to be on the rise, but slowing a bit according to the Iowa Farm and Land Chapter #2 Realtors Land Institute. They reported that the statewide average increase of cropland values of 10.6% for the year from September 1, 2012 to September 1, 2013. This follows an average increase of 18.5% for the year from September 2011 to September 2012; and an average increase of 32.6% for the year from September 2010 to September 2011. Overall, the strong upward movement in land prices has leveled out even though we have seen growth in values over the past six months especially in the East Central District, which covers much of the local market area. “Clearly the decrease in commodity prices and the potential for highly variable yields are slowing the increases in land value especially in medium to lower quality farms,” said Eric Schlutz, Realtor with Ruhl Farm&Land and Muscatine Manager for Ruhl&Ruhl REALTORS. The survey also attributed the current land values to an increase in long-term interest rates, 2013 growing conditions, a lack of stable alternative investments, large amounts of cash on hand and the limited amount of land on the market. Continue reading
Iowa Land Values Hit Plateau — Survey
Jeff Caldwell 09/20/2013 @ 2:35pmMultimedia Editor for Agriculture.com and Successful Farming magazine. Farmland in three of Iowa’s nine crop reporting districts saw a downturn in value in the last six months, according to the latest Iowa Realtors Land Institute (RLI) survey of land values, the results of which were released this week. Land in the northeast, southwest, and west-central parts of the state saw the upward trend in values turn into the red, however slightly: Farm ground in the northeastern part of the state was 0.7% lower in value compared to six months earlier, while land in the other two areas was 0.5% lower, according to the RLI’s survey of ag lenders around the state. “The results of these surveys show a statewide average increase of cropland values of 1.2% for the March 2013 to September 2013 period. Combining this increase with the 9.4% increase reported in March 2013 indicates a statewide average increase of 10.6% for the year from September 1, 2012, to September 1, 2013,” according to a report from Kyle Hansen of the Iowa Land Realtors Institute. “The nine Iowa crop reporting districts showed a mixed response. The districts varied from a 5.0% increase in EC district to a -0.7% decrease in NE district since March 2013.” Farmland values in Iowa, according to the most recent Iowa RLI survey of that state’s farm managers and ag lenders. (Chart courtesy Iowa RLI) Grain prices and interest rates — two factors that have been seen as drivers of a wider-scale easing of the climb in land values across the Corn Belt — are also to blame for the relative easing of values in Iowa, Hansen adds. “Factors contributing to current farmland values include: lower commodity prices, increase in long-term interest rates, and 2013 growing conditions,” he says. “Other factors include: lack of stable alternative investments, large amount of cash on hand, and limited amount of land on market.” Continue reading
