Iowa farmland continues to surge in price......BUBBLE?

[Fishhead]

Many acreages topping $7,000 per acre.

Many outside investors are coming into the market, as many have had it with the rumblings on Wall Street.

Many other factors playing into this decade surge with perhaps the #1 being ..........


Commodity prices(mainly corn and soybeans)

[Fishhead]

Low interest rates are really helping at this time also........and the shrinking dollar.

Farmland is the choice for the bigtime investor, not gold.

[Fishhead]

“Land is still a good investment for buyers, but they want the high quality properties that hold value,” said Lee Vermeer, vice president of real estate operations at Farmers National. “We are seeing values on the top quality ground at or even above the peaks we saw in 2008.

“In some cases, it’s beyond that point, above the $7,000 per acre mark. The market for these properties is strong and, based on economic indicators, we project that to continue.”

Vermeer added that the desire for high quality investments continues to push buyers away from the less productive land. Properties that are only partially arable or have non-productive soils are moving slowly and more time is needed to complete sales.
“Fewer landowners are willing to sell their property today leading to fewer listings,” Vermeer said. “Fewer farms or ranches for sale, along with strong buyer interest, have helped to fuel the recent strength in the market.”
A huge divergence in prices exists in Iowa and Minnesota. Sam Kain, area sales manager for Farmers National, said high quality land is bringing up to $7,000 an acre or more in Iowa and nearing $6,000 in Minnesota, while lower quality parcels are drawing minimal interest and coming in at much lower prices.
“Buyers are willing to pay top dollar for quality land,” said Kain. “However, there seems to be little interest in lower quality and recreational properties.”
Kain added that average land is moving, as long as the price is right, but bidding wars are a thing of the past.
A survey by the Iowa Farm and Land Chapter No. 2 of the Realtors Land Institute found an acre of high quality cropland was valued at $5,510 on March 1, up from $5,314 on Sept. 1, 2009.
Medium-quality farmland rose in value from $4,084 an acre on Sept. 1 to $4,206 on March 1. Low-quality cropland also increased, from $3,415 an acre on Sept. 1 to $3,449 on March 1.
A report from the Federal Reserve Bank of Chicago found that good quality Iowa farmland rose in value by 3 percent during the last quarter of 2009 and 4 percent during the entire year.

[str]

Looks like a real "Field Of Dreams" to me.

[Fishhead]

Looks like a real "Field Of Dreams" to me.

It's currently on the market...........


160 some odd acres........

ASKING PRICE.......5.6 MILLION DOLLARS!!!!

[Herky]

Not many are selling. If I was farmer with 2500 or 3000 acres in Iowa I would be retired in a heartbeat. Why go through all the stresses and problems of farming when you could sell your farm for $15-20M.