After seeing an average appreciation rate of 16% annually over the past ten years, two Farm Credit Services of America reports find that farmland values are settling back to historic appreciation averages of 8% – 10%. The two reports which include analysis of sales transactions and benchmark report, credit the moderation to falling commodity prices and concern over market volatility. Farmland values in Iowa remain the highest for 2013 averaging $9,863 per acre – an 8.7% increase over the previous year. South Dakota farmland values averaged $5,800 per acre – 23.3% over 2012 and Nebraska farmland values increased a minor 0.2% over 2012 to average $6,320. The number of public land auctions in 2013 was down 25% – 30% from 2012 and the number of ‘no sale’ auctions in Iowa was 6.7% in 2012 – 3% over the number in 2012 indicating that sellers may have overvalued their land as the market began to cool. The Benchmark Land Value study which tracks the value of 65 farm properties across Iowa, Nebraska, South Dakota, and Wyoming over a 30 year period reported much the same – a slight decline from record highs due to uncertainty over farm legislation and falling commodity prices, however the benchmark was still 9% over 2012 with a five and ten year appreciation averages of 86.8% and 252.2%.
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