Skip to main content

Report: Midwest farmland prices may have hit plateau

  • Author:
  • Updated:

The value of Midwest farmland has steadily climbed in the last seven years, largely due to high crop prices and low interest rates, but land prices may be leveling off, according to a new report, the Pioneer Press reports.

A new report from Rabobank International foresees a gradual decline in farmland values, perhaps 15 to 20 percent over three years, after interest rates begin to rise and crop prices level off a bit, the newspaper reports.

Land values went up in late 2011 and early in 2012, rising more than projected by the bank, Sterling Liddell, a vice president of Rabobank’s food and agribusiness research and advisory, told Reuters.

In Minnesota, cropland values went up about 20 percent between 2012 and 2013, up from an average of $4,050 per acre to $4,850, according a U.S. Department of Agriculture survey, the Star Tribune reported last month. Nationwide, farmland value was $4,000 per acre, up $460, or 13 percent, the newspaper reported.

Among Midwestern states, North Dakota has had the sharpest farmland value increases in the last year, due to an energy boom. The jump was also high in Iowa, which had a 20 percent leap in land values, to $8,400 an acre, according to a USDA survey, the Associated Press reports.

Observers say they don't expect sudden, steep drops in Iowa land values, the Des Moines Register reports. “Are we going to see the bubble burst? No,” said Kyle Hansen, a real estate agent at Hertz Farm Management in Nevada, Iowa, told the Register. More likely, he said, “we’ll see prices slowly deflate. ... It’s not dropping overnight.”

Next Up

covid test 6

You can order 4 free at-home COVID tests starting January 19

Tests will ship for free within 7-12 days, according to the White House.

Screen Shot 2022-01-17 at 9.39.38 PM

Jordan Greenway runs into Darcy Kuemper, sparks fight

Kuemper got knocked out of the game, leading to the brawl.

Kirill Kaprizov

MacKinnon's controversial goal helps Avalanche top Wild

Kirill Kaprizov's two goals were spoiled by a questionable call.

powell itasca jail jan 2022 resize

Attorney accused of sex assault misses hearing, DMs judge

He was arrested the next day after a warrant was issued,

lorie shaull vulcan snow park st paul winter carnival 2018

Winter Carnival: Get vaccinated or test negative before coming

Organizers are also reminding people to be mindful of the city's emergency regulations.

hospital, emergency room

Driver, 15 years old, hurt when car collides with SUV

The road was wet at the time, the State Patrol said.

Tyler Wahl

Minnesotans have the Badgers back in the national spotlight

Three of Wisconsin's four leading scorers are from Minnesota.