(Radio Iowa) – The latest Iowa State University Extension survey showed the price of farmland was up 29 percent — but the landowner profile has not changed very much. I-S-U Professor Wendong Zhang oversees the survey. “When you are thinking about the general trends, they are still consistent in historical patterns where you see a minor dip in the share bought by farmers and from a 22 to 25 percent increase for investors. But still, investors are not in the dominant category,” Zhang says. He says the type of seller hasn’t changed very much either.
He says 55 percent of the sellers are still estate sales and the sales by retired farmers — which is slightly higher than last year. “Some that are encouraged by the high prices. Some are concerned by the potential tax changes,” he says. One thing hasn’t changed, Zhang says those who own farmland in Iowa keep it. “Regardless of who they are — they tend to hold onto the land for a long time. So, half the land in Iowa is owned by the same owner for over 20 years. So, farmers are hoping for the appreciation — especially given the current tax law — you don’t necessarily have to pay capital gains taxes,” according to Zhang. Inflation has been an issue that’s hit a lot of areas — but he says it’s not major for farmland.
“Iowa doesn’t necessarily see as much influence because we have restrictions on corporate land ownership. Illinois probably sees a little more of that inflation,” Zhang says.
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