"The change marked the ninth consecutive year that land values have increased in Iowa," said ISU Extension economist Michael D. Duffy who directed the annual survey of farm real estate brokers. The 1995 survey indicated that values increased in all of Iow a's 99 counties.
"The real surprise is in southern Iowa," Duffy said. Land values increased throughout all of southern Iowa. Statewide, low quality land performed the best, showing the highest percentage increase, 10.9 percent.
Higher crop prices was mentioned as a positive influence on land value in 1995 by 47 percent of those who answered the poll, Duffy said. Other positive factors were interest rates (34 percent), crop yields (20 percent) and few listings (15 percent).
Low livestock prices was the most frequently mentioned negative influence, mentioned by 23 percent. Other negative factors included poor weather (20 percent) and unsettled farm programs (20 percent).
"The 1995 survey reflects very closely what is happening in the state. Higher crop prices and better than expected yields increased the earnings from the land," Duffy said. "Continuing relatively low interest rates also make land more attractive as an inv estment. The major uncertainties caused by the unsettled government programs, especially the Conservation Reserve Program, continue to keep land values in check.
"Looking ahead, the resurgence of the export market and lower government support indicates more price volatility in the future. This in turn will influence land values. History has shown that exports can be variable," the economist added.
Average values increased in all of the state's nine crop reporting districts. Central Iowa at $1,766 was highest, a 6.8 percent change. The smallest dollar increase was in the south central district, from $673 to $742 per acre, although this was the highe st percentage change at 10.3 percent.
The survey also asked questions about who is buying farmland in Iowa. The majority of sales, 70 percent, and acres sold, 69 percent, were to existing farmers. Investors represented 25 percent of the sales and 26 percent of the acres. New farmers represent ed 3 percent of the sales and 3 percent of the acres. Other purchases were 2 percent of sales and acres. Sales to existing farmers by crop reporting district ranged from 83 percent in the northeast to 62 percent in south central Iowa. Sales to investors w ere highest in south central, at 30 percent. The northeast reported the lowest investor activity, at 14 percent.
The Iowa land value survey has been conducted annually by Iowa State University since 1941 and is co-sponsored by the Iowa Agriculture and Home Economics Experiment Station and ISU Extension. Surveys are mailed to 1,100 licensed real estate brokers and se lected individuals with a knowledge of land values. The 1995 survey is based on 597 usable responses.
Duffy said only the state average and district averages are based directly on the survey data. The county estimates are derived by using a procedure that combines survey results with data from the U.S. Census of Agriculture. The average 7.3 percent increa se in land values is somewhat higher than other surveys of Iowa land values because of the time period covered -- the ISU survey is an annual survey as of Nov. 1, 1995. When comparing surveys, pay attention to the time period covered, the economist said.
Other trends from the 1995 survey include the following.
-- The highest value was estimated for Scott County, $2,332 per acre.
-- The lowest value was in Decatur County, $583 per acre.
-- The greatest dollar increase was $213 in Scott County.
-- The greatest percentage increase was in Page County, 11 percent.
-- Low grade land averaged $792 per acre (a 10.9 percent increase, $78 per acre.)
-- Medium grade land averaged $1,322 per acre (an 8.1 percent increase, $99 per acre).
-- High grade land averaged $1,869 per acre (a 6.2 percent increase, $109 per acre).
