Land prices in the Midwest have risen double digits in the last two years. In some areas, reports show more than 20 percent increases and it’s expected to continue for the next 24-48 months.
There are three factors weighing into these increases: rising farm incomes due to commodity prices, historically low interest rates and a limited supply of available land. States experiencing the highest prices include Missouri, Iowa and Illinois.
As of 2021, the national average for land was $3,380 per acre in the continental United States. However, all of the states that border Missouri are higher than the national average, with the exception of Oklahoma ($2,020) and Kansas ($2,100). Iowa and Illinois land prices are both double the national average. These values have increase significantly over the past decade.
A recent report from agriculture.com suggests rising inflation rates lowering the value of land for sellers, but there’s still a lot of opportunity for those looking to buy land (farmland) in 2022. However, the report shows some cracks forming in the next 12-24 months, saying “beyond 2022, I have a real concern about the fundamentals that have been driving farmland markets.”
If you’re looking for land, or want to sell your current property, contact one of our land professionals at United Country Real Estate. Visit www.UnitedCountry.com to start your search or find one of our offices nearest you.
