Iowa State University’s annual Land Value Survey shows farmland values are averaging $11,411 an acre in 2022, a 17 percent rise from last year.
ISU says farmers have a lot more cash on hand, and supply chain issues led to a shortage of equipment, so the money typically spent on equipment is now getting used to buy land. The survey included responses from land appraisers, farm managers, and lenders. Seventy percent of the people surveyed said land values were “too high” or “way too high.”
However, 48 percent of the participants also expect prices to be higher a year from now.
About 28 percent expect lower land values next year, and 24 percent expect prices to hold steady. The survey began in 1941, and the 2022 farmland value of $11,411 per acre is the highest in history.
When adjusted for inflation, this year’s value comes in at $8,716 an acre.