AMES, Iowa — Iowa farmland value jumped 29% this year to an average statewide value of $9,751 per acre, the highest such value recorded by Iowa State University since it began its survey in 1941.
The last time farmland values increased more than 25% in a year was in 2011, when values rose 32.5% due to surging ethanol demand and high commodity prices.
Associate Professor of Economics Wendong Zhang says the increase this year is in part due to much stronger commodity prices thanks to higher exports, stronger than expected crop yields and COVID-19 related government payments.
The average statewide value of an acre of farmland rose by $2,193 an acre since last year.
WATCH | Iowa farmland prices setting records