The price of Iowa farmland continues to fall. The price of a good acre of farmland fell 5% the past six months and almost 9% the past year. Officials this week reported that the average price of land per acre is around $6, 732. Why the decline?

Many attribute the lower land values to lower commodity prices, a limited amount of land on the market and high seed and fertilizer costs. Increasing interest rates may also be a factor. Experts say that the news isn't all bad. Many see the lower land prices as a correction. Land values soared as little as two years ago with some land selling for $11,000 per acre. Experts say prices for land were actually too high. Unless you were a seller of course.

The price drop doesn't vary much by region either. All nine Iowa crop reporting districts saw the value of farmland decrease.

 

[via Gazette]