Grand Rapids Business Daily

How long will prices for farm land in Iowa remain high?

The property I own is in Southeastern Iowa and property a few miles away just sold for $4800/acre. How long can I expect prices to remain at this level?

Public Comments

1. Real estate is a volatile market right now. The bottom could drop tomorrow or (hopefully) even out for awhile. Unless you are hard pressed for money I would not sell now. It will take several years to get through this recession, but WE WILL get through it.
2. If farmers are able to sell corn and soy at prices that make a good dollar, then land to grow that corn and soy will bring a good price. But part of the price of land is based on expectation that prices of land will rise. That part of the price can evaporate quickly, if that expectation is not being met. Even having land prices remain high but not increasing will destroy that expectation, and so trigger sales. You need to be monitoring for this failure to increase to signal time to unload it. Just for comparison, land in Southern Ontario in small lots is selling for 11,000/ acre, but this is within commuting distance of cities and towns. Out where commuting is not possible, prices closer to your 4800 /acre are normal.