The latest survey of Iowa farmland values by Iowa State University (ISU) shows an increase of 5.1 percent from November 2012 to November 2013.
ISU Extension farm management economist Mike Duffy says the market has cooled off considerably since commodity prices started dropping in June.
“Quite honestly, slowing down a little bit—not increasing as rapidly—I think is a good sign,” says Duffy. “It’s showing that the market is disciplined—and right now we’re just trying to wait and see if it’s a plateau, if it’s a peak, or if it’s a stop before it takes off again.
“We’ll just have to wait and see”
But Duffy says if projections of a new lower level for commodity prices hold, he expects land values to drop.
“Not a collapse, but rather a gradual adjustment to what the new levels are,” he says.
The statewide average for Iowa in November was 8,716 dollars per acre.