Iowa State University to release latest farmland values survey findings
Bankers expect value increase in spite of drought
Iowa State University will release its 2012 Iowa Land Value Survey on Dec. 11 at a news conference in Ames.
The survey will report the increase or decline in the value of an average acre of Iowa farmland between November 2011 and last month. Last year, the value of Iowa farmland soared 32.5 percent to an average $6,708 per acre during a comparable 12-month period.
ISU Extension Economist Michael Duffy, who directs the survey, will announce the survey results and provide background material.
The Federal Reserve Bank of Chicago recently reported that the value of an average acre of Iowa farmland jumped 18 percent from Oct. 1, 2011, through the same date this year. That represented a decline from a 24 percent increase in Iowa farmland values in the second quarter.
Across the five-state Seventh Federal Reserve District, farmland values rose an average 13 percent on a year-over-year basis and 5 percent in the third quarter. In northeast Iowa, the value of an average acre of the same quality farmland increased 19 percent year-over-year and 9 percent in the most recent quarter.With 36 percent of the bankers anticipating higher farmland values in the current quarter and only 1 percent expecting declining values, the drought does not seem to have affected bankers' expectations of further increases.