Iowa farmland values are at record levels according to the most recent survey done by Iowa State University. Associate professor Wendong Zhang says the average value of an acre of Iowa farmland has skyrocketed to $9,751, up $2,193 or a 29 percent increase in 2021. That is 12-percent above the previous peak in 2013.

Zhang cites several reasons for the uptick in land values, including strong government payments and higher commodity prices.

Zhang says when adjusted for inflation the increase in value is lower than in 2012 and 2013. He thinks inflation is likely the reason the land values are getting close to a top, plus anticipated increases in interest rates.

He says 70-percent of the land is still being purchased by farmers, especially livestock producers in northwest Iowa who need the land for nutrient management.