Source: Iowa State University Extension

The average value of an acre of farmland in Iowa increased 15.9 percent in 2010, according to an annual survey conducted by Iowa State University Extension. Mike Duffy, ISU Extension economist who conducts the survey, said the statewide average land value as of Nov. 1 this year was $5,064 an acre, up $693 per acre from 2009.

The 2010 survey shows a substantial increase in land values following a drop in 2009. "We need to watch the land values and be prudent, but I don’t think we need to be overly pessimistic there will be a crash in values anytime soon," said Duffy. "The rate of increase in 2010 appears high, but it is half the yearly increases in 1973, 1974 and 1975."

Duffy said it is important to remember the time span when evaluating survey results and the economics in relation to time. Monthly prices for corn averaged 37 percent higher July to November in 2010 compared to average monthly prices from January through June. Soybean prices were 21 percent higher over the same time span, Duffy noted.

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