Duffy says that among the factors that could cause land prices to soften in the future could be increased crop production in South America, Central Asia, Ukraine and some other countries. Those areas of the world have become strong grain exporting regions. If their production keeps growing, that would increase world grain supplies and reduce the export demand for U.S. produced grain.
"The world is gearing up for more production," cautions Duffy. "So it's a question of when, rather than if, supplies of grain increase and crop prices decline significantly. But getting that increased world production might take a couple of years."
More information on land values, comparisons to past survey results available
Maps showing 2012 land values, percentage change and comparisons to 2011 data and additional information from Duffy are available on the ISU website. Maps (for Web viewing) include the following (click on the word "Map" to select which map you want to view):
Map 1: 2012 and 2011 Iowa Land Values, by county
Map 2: Percentage Change in Iowa Land Values, 2011 to 2012
Map 3: 2012 Iowa Land Values, by Crop Reporting District
Map 4: Percentage Change in Iowa Land Values, 2011 to 2012 (ranking)
Map 5: 2012 Iowa Land Values (dollar ranking)
The Iowa Land Value Survey was initiated in 1941 and is sponsored by the Iowa Agriculture & Home Economics Experiment Station, Iowa State University. Only the state average and the district averages are based directly on the ISU survey data. The county estimates are derived using a procedure that combines survey results with data from the U.S. Census of Agriculture.
The survey is based on reports by licensed real estate brokers and selected individuals considered knowledgeable of land market conditions. The 2012 survey is based on 486 usable responses providing 663 county land value estimates. The survey is intended to provide information on general land value trends, geographical land price relationships and factors influencing the Iowa land market. It is not intended to provide an estimate for any particular piece of property.