Iowa Farmland Prices Get Frothier

Des Moines Register:

Iowa farmland values shot up an average of 12.9 percent during the past six months and an average of 32.6 percent for the year ended Sept. 1, according to a new survey by the Iowa Farm & Land  Chapter No. 2 Realtors Land Institute.
The institute, which has been conducting twice-yearly surveys since 1978, placed the average value of medium quality crop land in Iowa at $6,477 an acre, up from $5,711 an acre in March.
Northeast Iowa had the largest average increase, 17 percent, during the six months, while Southeast Iowa had the lowest, 8.5 percent, the new survey showed.
The highest average value for high quality crop land was in Northwest Iowa, at $9,685, an increase of 14.9 percent since March.
The lowest average value for top quality crop land was in Southwest Iowa, at $7,555 an acre, an increase of 9.3 percent since March.
“Factors contributing to the increase in farmland values include: strong commodity prices, favorable long term interest rates and limited amounts of land for sale,” the Realtors institute said in a statement announcing the new values.

I don't see how this doesn't melt down sometime in the not-too-distant future.  12.9% in six months?  That is approaching Phoenix real estate circa 2005.  Back then the story was there wasn't enough housing stock.  Now it is that commodity prices will stay where they are or go up higher.  Count me as somebody who doesn't quite believe the hype.