BLENCOE, Iowa (KCAU) — Iowa farmland prices have been on the rise for months now and a new state record was set this week.
Eighty acres of farmland sold in Grundy County for $22,600 per acre. While different factors impact farmland prices, Mark Vos, a sales associate with Keller Williams, said one of the biggest issues is the lack of available land.
“I think a lot of it is supply and demand,” Vos said. “There’s farmers out there right now that that’s all they’ve really ever known is farming. It seems like whenever something comes available, if they don’t buy it now, it’s never going to have a chance to buy it in the future.”
Jason Smith, auctioneer and land broker with DreamDirt Iowa Land Auctioneers, said these rising costs reflect Midwest success.
“You can see how healthy we are by what the farmer is spending on farmland, how many tractors they’re buying, many of those different indicators tell us where we’re at,” Smith said. “We have a really optimistic situation right now.”
Smith said prices have increased over the last 10 months and land has sold anywhere from 7 to 15 percent higher than expected.
“My suspicion tells me through the fall and winter we’re probably going to see more of these higher farmland prices,” Smith said. “Certainly if someone is considering selling a farm, now is probably a really good time to do that without the stress that you would in some of the other years.”
With low interest rates and farmers exporting more crops, the demand for farm land is high throughout Siouxland.