A recent farmland sale in Plymouth county set a new state record for Iowa going for $26,250 per acre. That sale was for 55 acres and a total of $1.44 million.
Karl Setzer, Commodity Risk Analyst with AgriVisor, says there are many reasons why farmland sale prices are going up despite higher interest rates and high input costs.
Setzer says that if farmers have cash on hand they are trying to act now in case interest rates further increase.
One issue with the current high land prices is that new farmland buyers may be getting priced out of the market.
According to the USDA, the average cropland value across the U.S. in 2022 went up 14.3 percent from 2021.
