Gains in Canadian farmland values may be slowing; in Iowa they are continuing to slide.
According to the results of an Iowa State University survey released this week, the average value of Iowa farmland has shown a decline for the third year in a row — the first three-year losing streak since the 1980s farm crisis. At US$7,183, the average per acre price of farmland in the state was down $449 or almost 6% from November, 2015 and is now 17.5% below the historic high of $8,716 reached in 2013.
“The golden era of phenomenal, yet abnormal growth in farm income and land values, as we saw from 2006 to 2013, is already behind us,” said Wendong Zhang, assistant professor of economics at Iowa State University, who led the annual survey. “The land market is going through an orderly adjustment while the U.S. agricultural sector, a competitive industry, is trying to adjust to the old normal of zero industry-wise net profits.” Read more