Farmland Prices Still Rising

Des Moines Register:

The skyrocketing value of Iowa farmland has slowed a little in the past six months but continues to grow at an average annual rate of more than 20 percent, Iowa farm real estate agents were told during a meeting Friday in Ankeny.
The average statewide increase for the six months ending March 1 was 10.8 percent, according to the semi-annual survey by the Iowa Farm & Land Chapter 2 Realtors Land Institute.
The average increase for 12 months was 23.7 percent, the group said. That’s down from an annual rate of 32.6 percent last September.
“The short-term outlook is for land prices to remain steady to a little higher,” said Kyle Hansen, president of the group and an official with Hertz Farm Management in Nevada.
“Farmland values have a high correlation with commodity prices,” Hansen said.
As long as corn remains well above $5 a bushel, as it currently is at $6 to $6.50 a bushel, current land values should hold, Hansen said. But if corn drops to $4.50 or $4 farmland will begin losing value, he said.

There is some discussion in the article that a top may be forming.  I wouldn't be surprised if that is the case.  The numbers are getting so big, I don't think they can be justified even with record prices.