September 28, 2015
By Jim Offner
A swooning agriculture sector (click here) has taken numerous swipes at Iowa’s economy in the last year — the layoffs at John Deere among them.
But, last week, farmers across Iowa — but especially in the northeastern quadrant of the state — took a shot that hit closer to home than any others: land prices.
According to the September 2015 Iowa Chapter of Realtors Land Institute’s Land Trends and Values Survey that came out Tuesday, cropland values fell 3.7 percent statewide in the last six months and 11.3 percent since the September 2014 report.
Northeast Iowa values fell harder than those in any other region in the last year — 15.1 percent on average for all tillable land....
...Factors contributing to current farmland values include: lower commodity prices, increasing interest rates, lack of stable alternative investments, cash on hand and a limited amount of land on the market, said Kyle Hansen, an auctioneer with Nevada-based Hertz Farm Management, which has nine offices, including one in Waterloo.
“Land values are closely tied to the net revenue generated by what is able to be produced; Commodity prices are still the highest factor in establishing land values,” said Hansen, chairman of the survey committee. “The farmland market has continued its downtrend since the spring of 2013, when corn and soybean prices peaked. And although farmers represent nearly 80 percent of the land buyers, the reduced land values are creating purchasing interest from non-operating landowners and investment buyers.”...
By Jim Offner
A swooning agriculture sector (click here) has taken numerous swipes at Iowa’s economy in the last year — the layoffs at John Deere among them.
But, last week, farmers across Iowa — but especially in the northeastern quadrant of the state — took a shot that hit closer to home than any others: land prices.
According to the September 2015 Iowa Chapter of Realtors Land Institute’s Land Trends and Values Survey that came out Tuesday, cropland values fell 3.7 percent statewide in the last six months and 11.3 percent since the September 2014 report.
Northeast Iowa values fell harder than those in any other region in the last year — 15.1 percent on average for all tillable land....
...Factors contributing to current farmland values include: lower commodity prices, increasing interest rates, lack of stable alternative investments, cash on hand and a limited amount of land on the market, said Kyle Hansen, an auctioneer with Nevada-based Hertz Farm Management, which has nine offices, including one in Waterloo.
“Land values are closely tied to the net revenue generated by what is able to be produced; Commodity prices are still the highest factor in establishing land values,” said Hansen, chairman of the survey committee. “The farmland market has continued its downtrend since the spring of 2013, when corn and soybean prices peaked. And although farmers represent nearly 80 percent of the land buyers, the reduced land values are creating purchasing interest from non-operating landowners and investment buyers.”...
Factors
contributing to current farmland values include: lower commodity
prices, increasing interest rates, lack of stable alternative
investments, cash on hand and a limited amount of land on the market,
said Kyle Hansen, an auctioneer with Nevada-based Hertz Farm Management,
which has nine offices, including one in Waterloo.
“Land values are closely tied to the net revenue generated by what is able to be produced; Commodity prices are still the highest factor in establishing land values,” said Hansen, chairman of the survey committee. “The farmland market has continued its downtrend since the spring of 2013, when corn and soybean prices peaked. And although farmers represent nearly 80 percent of the land buyers, the reduced land values are creating purchasing interest from non-operating landowners and investment buyers.”
- See more at: http://amestrib.com/news/farm-economy-takes-toll-iowa-land-values#sthash.M4GQBqOy.dpuf
“Land values are closely tied to the net revenue generated by what is able to be produced; Commodity prices are still the highest factor in establishing land values,” said Hansen, chairman of the survey committee. “The farmland market has continued its downtrend since the spring of 2013, when corn and soybean prices peaked. And although farmers represent nearly 80 percent of the land buyers, the reduced land values are creating purchasing interest from non-operating landowners and investment buyers.”
- See more at: http://amestrib.com/news/farm-economy-takes-toll-iowa-land-values#sthash.M4GQBqOy.dpuf
A
swooning agriculture sector has taken numerous swipes at Iowa’s economy
in the last year — the layoffs at John Deere among them.
But, last week, farmers across Iowa — but especially in the northeastern quadrant of the state — took a shot that hit closer to home than any others: land prices.
According to the September 2015 Iowa Chapter of Realtors Land Institute’s Land Trends and Values Survey that came out Tuesday, cropland values fell 3.7 percent statewide in the last six months and 11.3 percent since the September 2014 report.
Northeast Iowa values fell harder than those in any other region in the last year — 15.1 percent on average for all tillable land.
- See more at: http://amestrib.com/news/farm-economy-takes-toll-iowa-land-values#sthash.M4GQBqOy.dpuf
But, last week, farmers across Iowa — but especially in the northeastern quadrant of the state — took a shot that hit closer to home than any others: land prices.
According to the September 2015 Iowa Chapter of Realtors Land Institute’s Land Trends and Values Survey that came out Tuesday, cropland values fell 3.7 percent statewide in the last six months and 11.3 percent since the September 2014 report.
Northeast Iowa values fell harder than those in any other region in the last year — 15.1 percent on average for all tillable land.
- See more at: http://amestrib.com/news/farm-economy-takes-toll-iowa-land-values#sthash.M4GQBqOy.dpuf
