Farm Land Prices Down

Farm ground price per acre went down again in 2016, dropping for the third year in a row according to an Iowa Sate University Extension Survey. Going down $450 dollars, to an average of $7,183 dollars an acre.

The peak was in 2013 with an average price of $8,716 dollars an acre.

Farmers represented 74 percent of sales in 2016, investors bought 22 percent and new farmers only made up three percent.

At the 10th Annual Land Investment Expo, land prices were on the mind.

Brad Hayes a Real Estate Appraiser with the Peoples Company says it's an interesting market. One meeting they'll see high demand, high price and others they'll see markets softening up with farmers selling some capital.

Iowa State says most farmers listed positive and negative aspects influencing land markets.

Hayes points to the near 470 farms in the state of Iowa for sale. Of that, those that are 85 percent or more tillable known as "high quality farms" include 120 farms. Overall, that's helping land values hang in strong for good farm ground.

Hayes says, "Again, coming back to supply and demand, there's still a lot of cash out there and until that cash runs out, we're not going to see much change, or all else, the same. But the same time, there's still a lot of investor capital so at some point there's going to be a floor. But right now its still mostly farmers buying properties."

Hayes adds on pasture and hunting land there hasn't been much change. There's a lot of buyers especially in the southern part of Iowa as well as the Clayton County area for recreational ground, but for the most part that's been consistent.