(Northiowanews.com) - The value of North Central Iowa farmland is continuing to climb, according to a recent survey done by a state realtor institute.

The North Central Iowa region saw a 3.7-percent increase in the value of quality farmland during a six-month period ending in March. The increase-a value determined by the results of the March 2010 Land Trends and Values Survey sent out by the Iowa Farm and Land Chapter No. 2 of the Realtors Land Institute-means the region has seen a total 4.9-percent increase in the last year.

Paul Kelly, local realtor and member of the Iowa Farm and Land chapter, said the increase is attributed to farmland being one of the more reliable investments in the area.

“In some years, the alternative investments were better,” Kelly said, “but now land is one of the better, more secure investments.”

In September 2009, the North Central Iowa region was one of two regions in the state to experience an increase in farmland value while other regions showed a decrease. Despite past results, the most recent survey shows land values in every region throughout the state are steadily increasing.

Twice a year, the Iowa Farm and Land Realtors send a survey to all of its members throughout the state. The survey is designed to determine what the price of tillable farmland has done since the previous survey and why any change has occurred. The survey was created in 1978.

The survey is sent out to members as a form. Each person receiving the survey is asked to estimate the value of three different types of farmland-low, medium and high quality. The difference in land quality is determined by its corn suitability rating, or which type of land is likely to produce the most corn.

Members estimate the current land value by determining the dollar amount at which the land is currently selling.

Those taking the survey are also asked what type of buyers they are seeing who are interested in purchasing farmland, Kelly said.

Participants were also asked to provide values for pasture and timberland as supplemental information.

The results of the survey determined land value has increased statewide by a 2.8-percent average for the September 2009 to March 2010 period. The districts varied from a 4.4-percent increase in Central Iowa to 0.8-percent in Northeast Iowa.

The North Central Iowa Region saw an increase in the value of all three types of land contributing to the area's overall value.

According to the same survey conducted in 2009, values decreased statewide by 1.9 percent from March 2009 to September 2009.

The increase in statewide land value could be attributed to a variety of factors, including limited amount of land being offered for sale, lower input costs and strong cash rents.

One of the biggest factors influencing the value of North Central Iowa farmland continues to be the lack of quality farmland on the market and the overall scarcity of available land, Kelly said.

Kelly also said the increase in the North Central Iowa region could also be attributed to predictable weather and climate.

“The weather factor is quite good here,” Kelly said. “We also have very dependable land in this area.”

Although Kelly said he expects to see the value of land continue to climb, several things could affect the future of Iowa farmland, including lower commodity prices, recent losses in the livestock industry, uncertainty of future government programs and the uncertainty in both the U.S. and world economy.

http://www.northiowanews.com/articles/2010/04/21/britt_news/01land.txt