Iowa farmland value increases despite drought - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa farmland value increases despite drought

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CEDAR FALLS (KWWL) -

Even in the year of a drought, Iowa farmland is more valuable than ever before.

An acre of good quality farmland can now sell for $14,000, which is more than double what cropland sold for just five years ago.

"You would think with the drought that there would be people pulling back a little bit and values would not be that strong, but we're finding just the opposite that values remain very firm," said Robert Regenwether, a real estate agent and professional farm manager with Farmers National Company.

Regenwether said the high demand for commodities like corn and soybean have driven the rise is farmland value.

"With the demand that's out there, you won't have a lot of problems getting a farm sold," said Regenwether.

Millions of dollars are in the farm real estate industry. Farm management companies have evidence that there are lots of people looking to buy good quality land.

"Now is a great time to sell because of the high prices, but there's high prices because there's high income along with it," said Morgan Troendle of Hertz Farm Management.

Troendle credits the high demand for crops as the biggest factor for driving the high price of farmland, but he also said low interest rates at the bank are a factor in first-time farmers.

"Some of the bankers we talk to say they have some farmers with very high balances in their accounts, and they're just waiting for the right piece of land to come up. There are so many people looking to buy right now," said Troendle.

Troendle said the high demand for cropland makes now an ideal time to sell, but it also depends on the situation.

"If you're looking for a good investment, then it's a great asset to keep in the family," he said. 

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