The prices being paid for midwest commodity-crop farmland continue to skyrocket.
The price of cropland in Indiana has increased 14.5% over the last 12 months. That’s modest. South Dakota cropland is up more than 30% and North Dakota cropland is up a whopping 41.5%. The price of Nebraska cropland has doubled over the past three years. The story is the same throughout the grain belt.
In Iowa farmland prices have increased 265% from 2004 to 2012 (as net farm income skyrocketed 340%).
Throughout the five state district comprised of Iowa, Indiana, Illinois, Michigan and Wisconsin, farmland prices have increased 14% in just the last quarter (July 1, 2013 to October 1, 2013). In southern Indiana and Illinois prices paid for farmland have increased 21-26%, over the last three months alone.
An article I read in the industrial-ag publication Progressive Farmer mentions a tract in Missouri that changed hands six times in the last 12 months, doubling in price. One person interviewed for the article complained, “Five million dollars won’t buy much these days.”
As Joel Salatin likes to say, “Folks, this ain’t normal.”