Land values skyrocketed 20% in 2010 – want to know where?

Prices of a specific type of land jumped between 15% to 20% in the last six months of last year. According to Creighton University economist Ernie Goss as featured in CNN Money, states surrounding Iowa experienced soaring land values.

So crop land is up, but why? Goss notes commodity prices are up and “as crop failures in some food-exporting countries boosted the demand for U.S. grains and soybeans. For example, corn rose to $240 a ton in December compared with $166 just 12 months earlier.”

Any instability in this market whether jumping up or down in value impacts America’s heartland- if values jump up too high, taxes follow and obtaining more land becomes difficult for the smaller farmer.

It’s great for those looking to get out of the farming industry and sale their land right now but for the rest, this isn’t exactly exciting news- a slow increase over time is more suitable to avoid a bubble or jacked up taxes.

Farmers are in a state of flux as many have become slaves to corn (forgive me if I opine personally here), and others have leased out space to alternative energy sources. The last thing independent farmers need stacked up against them right now is the inability to expand or an unreasonable 2011 tax bill in the mail. What say you?

The American Genius Staff Writershttps://theamericangenius.com
The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

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