Dec 26 (Reuters) – The rise and rise of farmland values
faces two tough challenges: falling crop prices and rising
Because farmland is not a widely-held investment, with the
exception of large institutions, its remarkable rise gets
comparatively little attention.
Illinois average farmland prices more than doubled, to
$7,900 per acre in the six years to 2013, according to one
Department of Agriculture measure.
A separate survey of Iowa farmland, by Iowa State
University, found a 5.1 percent gain in the last year alone to
$8,716, taking prices up by 168 percent in the past decade in
inflation adjusted terms. ( here
Much of this rise has had a fundamental basis. The trend
over the medium term in agricultural commodity prices has been
higher, with strong demand from emerging markets, better
management techniques and falling prices for inputs like