Tight supplies and higher than expected farm incomes are supporting the stabilization of farmland prices despite forecasts of a decline of as much as 20% compared to last year, according to Farmers National Company, the largest manager and seller of farms and ranches in the U.S. In Indiana, Illinois, Iowa, and Nebraska prices for prime farmland are ranging from $3,500 per acre to $12,500 per acre and farmland values in the Upper Midwest region are remaining strong with sales reaching $9,000 per acre. After very high quality farmland in Iowa sold for approximately $20,000 per acre last year some analysts voiced concerns that a bubble was forming in the U.S. farmland market however because of various supporting factors, this scenario has not materialized.
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