Iowa farmland values decline 6 percent over the past year

farm fence

Des Moines, Iowa (AP) – The average value of Iowa farmland declined 6 percent over the past year, and this is the first time those values have dropped for three years in a row since the 1980s farm crisis.

Iowa State University estimates that Iowa farmland is now worth about $7,183 per acre on average.

But assistant Iowa State University economics professor Wendong Zhang says the state is unlikely to see another crisis soon because farmers are generally in better financial shape.

Most Iowa farmers increased their financial reserves during the boom that preceded the current drop in crop prices. And Zhang says government safety nets are better than they were in the 1980s and interest rates remain low.

Plus, the overall debt level for farmers remains lower.

About Chris Berg 3636 Articles
Chris was born and raised in Webster City, IA. As a young kid, he would always be caught singing along to songs on the radio. He says he's good at karaoke but we think otherwise. ;) In his free time, he enjoys beginning new projects at home and hardly ever finishing them. Chris lives in Charles City with his wife Vicki and a daughter Brynlee.