Iowa farmland declines for first time in 10 years
On Tuesday, the Realtors Land Institute released their survey of Iowa farmland prices, which indicated that farmland values declined by an average of 7.6 percent over the past six months. That hasn't happened since September 1999. From March to September of 2008, land values increased 6.6%, which means values fell about 1 percent over the past year.
The land institute divides Iowa into nine districts, which all showed declining land values. The steepest decline was in west central Iowa, which saw a 14 percent drop. In southeastern Iowa values slipped just over two percent.
Troy Louwagie, spokesman, commented "Low commodity prices, higher input costs for farmers, a depressed market for livestock producers and a volatile economy and stock market all contributed to the decrease."
Mike Walsten, editor for Professional Farmers of America, noted that most land bought in the past several years was bought with cash or by people “with deep pockets” meaning there shouldn’t be any replication of the 1980s, when land prices fell, and farmers faced foreclosures.
We don't see the decline in prices as too concerning and see this decline as a good buying opportunity. Remember the saying "buy low, and sell high."
We expect to get more color on South Dakota land prices in May from the South Dakota Market Trends.
- Colvin
The land institute divides Iowa into nine districts, which all showed declining land values. The steepest decline was in west central Iowa, which saw a 14 percent drop. In southeastern Iowa values slipped just over two percent.
Troy Louwagie, spokesman, commented "Low commodity prices, higher input costs for farmers, a depressed market for livestock producers and a volatile economy and stock market all contributed to the decrease."
Mike Walsten, editor for Professional Farmers of America, noted that most land bought in the past several years was bought with cash or by people “with deep pockets” meaning there shouldn’t be any replication of the 1980s, when land prices fell, and farmers faced foreclosures.
We don't see the decline in prices as too concerning and see this decline as a good buying opportunity. Remember the saying "buy low, and sell high."
We expect to get more color on South Dakota land prices in May from the South Dakota Market Trends.
- Colvin
Posted by Colvin & Co. at 3/12/2009 7:22 PM 
Categories: Farmland
Tags: Iowa agriculture commodities farmland
Categories: Farmland
Tags: Iowa agriculture commodities farmland
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