The cost to rent farmland in southeast Iowa has increased substantially in the last five years. The increases have been even higher statewide.
The sale of prime farm land in west-central Illinois usually brings more than $10,000 per acre.
A consultant and former WIU faculty member said that trend is likely to continue.
David Johnston said the prices for farm land are not a “bubble.” He said the prices are based on solid fundamentals.
He said low interest rates are having a limited effect.
Johnston said, “The buyers in this market are primarily cash buyers. So interest rates are irrelevant to a totally cash buyer as far as borrowing funds whatsoever.”