USDA’s land values summary shows farmland values rose by $420 per acre this year. American Farm Bureau Federation economist Danny Munch said that’s the largest year-over-year increase since the survey began in 1997. “Part of this increase is going to be linked to the rise in commodity prices that have translated to higher farming values in those lands, especially in heavy row crop Heartland states like Iowa and Indiana. There’s also competition with federal government program incentives like the Conservation Reserve Program.” Pifer’s Auction and Realty President Kevin Pifer said there has been a steady increase in farmland values over the past 15 months. Good quality farm ground increased in value by 40-to-60 percent during the time. The threat of high interest rates may eventually soften land values, but that hasn’t happened yet.
