For the past couple of years, we have seen land values increase in Iowa and across the corn belt. Land values are up in a range of 20% – 34% in this time period. Of course, most of these land values have been attained through land auctions. This allows for bidding wars to spin off and increase prices that would normally be asked. However, as the economy slows and the prices of some commodities start to settle, we are starting to see this increase in value starting to slow.
Increases in land values are still happening, just not at the rate we had been seeing.
Paul Schadegg is the Senior Vice President of Real Estate Operations for Farmers National Company. He talks about the slowdown that we are starting to see. The data from the Federal Reserve is supporting what they are seeing. However, this is nothing to become alarmed about.
Schadegg says that Iowa land has been getting exceptional values for their land, and while he sees that numbers coming down a bit, he still expects Iowa to perform well.
Schadegg says that these prices have strengthened the positions of both sides of the camp. Some want to take advantage of these prices while they can. Others may be deciding to hold on to these properties longer as investments as well.
Learn more about your land values and what the markets are doing by visiting with the Farmer?s National Company.
