The average price for farm land is increasing in southeast Iowa as well as across the state. Troy Louwagie with the Iowa Farm and Land Realtors Land Institute says the results of the March 2011 Land Trends and Values Survey shows a statewide average increase of 19.7% from September 2010 to March 2011. Louwagie says when combining the 5.7% increase reported in September 2010, the statewide average of land has increased over 25% in the last year.
Southeast Iowa had the second largest increase in the state with just over 21%. Louwagie says factors contributing to the increase in farmland values include: strong commodity prices, favorable long term interest rates, and limited amount of land offered for sale. The Iowa Farm and Land Realtors and value survey has been conducted as of March and September since 1978.