Federal Reserve reports Iowa farmland values rose

CEDAR RAPIDS, Iowa (AP) — The Federal Reserve Bank of Chicago says its survey showed Iowa farmland values rose 20 percent during 2012, a year in which the state struggled with drought.

The bank’s survey echoes the Iowa State University’s annual Iowa Land Value Survey, which is conducted in November. The ISU survey said the value of an average acre of good Iowa farmland rose almost 24 percent from October 2011 to October 2012.

The Gazette reports that the bank’s survey of 212 agricultural banks across the 7th Federal Reserve District found farmland values rose even faster during the last quarter of 2012, as possible tax increases loomed for 2013.