(Quad-Cities Online) - "Midwestern farmland in general and specifically in our Eastern Iowa trade area has been a bright spot in real estate these past several years. Currently demand is outpacing supply especially in the high quality, all tillable farm parcels," notes Dennis Stolk, Accredited Land Consultant with Ruhl&Ruhl's Davenport office.

"Strong commodity prices, low interest rates, strong cash rents and good crop yields are supporting this demand. Many buyers are realizing the steadiness, safety, yield and value growth of a farmland investment. Annual returns of 3.5% - 4.5% before asset growth are safe and attractive for easily managed farmland."

The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter No. 2 REALTORS Land Institute, reported a statewide average increase of 8.5% for the year from September 2009 to September 2010. An increase of 5.7% occurred statewide in just the last six months, measuring the March 2010 to September 2010 period.

The survey attributed the increase to several contributing factors, including limited amount of land offered for sale, higher commodity prices, lack of alternative investments, strong cash rents, and favorable long-term interest rates.

For the survey, participants are asked to estimate the average value of farmland as of Sept. 1, 2010. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information.

All nine Iowa crop reporting districts showed an increase. The districts varied from a 9.8% increase in Northwest Iowa, to a 2.4% increase in South Central Iowa for the March 2010 to September 2010 period. The East Central district, where the majority of Ruhl&Ruhl offices are located increased 5.8% in the past six months and the Northeast district, where the company's Dubuque office is located, increased 3.7%.

"Cropland is selling very quickly in our area, especially if it is high-quality cropland," said Tom Marcus, a Ruhl&Ruhl Realtor in the Maquoketa area, adding that a good farm will sell within 30 days if priced at the current market value.

"Land is a good investment as compared to the stock market or bank savings account or Certificate of Deposit. There is a good cash rental income off the land and it is never worthless."

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